What is unrealized PNL in KuCoin Futures?

Understanding Unrealized PNL in KuCoin Futures

When trading futures contracts on KuCoin, one key metric traders must monitor is unrealized PNL (Profit and Loss). This value reflects the current gain or loss of an open position based on the latest market price, even though the trade has not been closed yet. It is dynamic and changes in real-time as the market moves. For instance, if you hold a long position in BTC/USDT perpetual futures and the price rises, your unrealized PNL increases in green, signaling a paper profit. Conversely, if the price drops, it turns negative, showing a paper loss.

Unlike realized PNL—which only locks in when you close a position—unrealized PNL gives you immediate insight into how your open trades are performing. This helps you make timely decisions such as adding to a winning position or setting stop-losses to limit potential losses.

How KuCoin Calculates Unrealized PNL

KuCoin uses different formulas depending on whether your position is long or short:

• For a long position:Unrealized PNL = Position Size × (Mark Price - Entry Price)

• For a short position:Unrealized PNL = Position Size × (Entry Price - Mark Price)

The Mark Price is crucial—it’s not the last traded price but a fair price derived from an index and funding rates to prevent manipulation. KuCoin updates this value every few seconds. If your position size is 1 BTC, entered at $60,000, and the current Mark Price is $62,000, your unrealized PNL would be:1 × (62,000 - 60,000) = $2,000. This appears in green bold in your futures dashboard as a positive unrealized gain.

Where to Find Unrealized PNL on KuCoin

To locate this data:

• Log in to your KuCoin Futures account.
• Navigate to the 'Positions' tab in the trading interface.
• Look under the 'Unrealized PNL' column for each open position.
• The value updates automatically as the market shifts.

If you have multiple positions across different contracts (e.g., BTC, ETH, SOL), each will show its own unrealized PNL. The system displays it in both USDT and percentage terms, allowing you to assess risk exposure per asset. A green number indicates profit, while red means loss—no need to calculate manually.

Impact of Leverage on Unrealized PNL

Leverage amplifies both gains and losses. Suppose you open a 10x leveraged long position of 0.1 BTC at $60,000 using $600 of margin. If the Mark Price rises to $61,200:

• Position size = 0.1 BTC
• Unrealized PNL = 0.1 × (61,200 - 60,000) = $120
• Return on margin = $120 / $600 = 20%

This 20% return is only possible due to leverage. However, if the price drops to $58,800, your unrealized PNL becomes -$120—a 20% loss on margin. KuCoin’s interface highlights these changes instantly, so you can react before liquidation occurs. Always check the liquidation price next to unrealized PNL to avoid margin calls.

How Funding Rates Affect Unrealized PNL

In perpetual futures, funding rates are paid or received every 8 hours between longs and shorts. While funding payments impact your wallet balance, they do not directly alter unrealized PNL. However, they influence your effective entry price over time. For example:

• If you hold a long position and pay funding, your net cost basis increases slightly.
• This indirectly affects future unrealized PNL calculations when the position remains open across funding intervals.

KuCoin displays funding history in the 'Funding Records' section. Monitoring this helps you understand why your unrealized PNL might drift even if the Mark Price stays flat.

Frequently Asked Questions

Q: Does unrealized PNL affect my available margin on KuCoin?Yes. Unrealized PNL directly impacts your equity, which determines available margin. A negative unrealized PNL reduces your equity, lowering available margin for new positions. A positive one increases it.

Q: Why is my unrealized PNL zero even though the market moved?This can happen if your position was just opened and the Mark Price hasn’t changed from your entry. Also, check if the contract uses a different pricing index—some altcoin futures may lag slightly behind spot prices.

Q: Can I withdraw unrealized PNL before closing the position?No. Only realized PNL (after closing) becomes part of your available balance. Unrealized PNL is theoretical until the position is settled.

Q: Is unrealized PNL taxable on KuCoin?Tax treatment depends on your jurisdiction. Most tax authorities only recognize gains upon realization (i.e., when you close the trade). Consult a tax professional—KuCoin does not provide tax advice.