How to calculate profit and loss on Bybit?

Bybit calculates P&L differently for linear and inverse contracts, using mark price to prevent manipulation and separating realized from unrealized gains.

Aug 06, 2025 at 03:42 am

Understanding Profit and Loss Metrics on Bybit

When trading on Bybit, understanding how profit and loss (P&L) are calculated is essential for managing risk and evaluating performance. Bybit supports both spot trading and derivatives trading, including perpetual contracts and futures, each with different P&L calculation methods. The platform distinguishes between realized P&L and unrealized P&L. Realized P&L refers to gains or losses locked in after closing a position, while unrealized P&L reflects the current value of open positions based on the latest market price.

For inverse contracts, profits are calculated in the base cryptocurrency (e.g., BTC), while linear contracts settle P&L in stablecoins like USDT. This distinction affects how traders perceive their returns, especially during volatility. Bybit displays both types of P&L in the user interface, typically under the "Positions" tab. Traders must understand the contract type, leverage, entry price, and exit price to manually verify the platform’s calculations.

Calculating Unrealized Profit and Loss

Unrealized P&L shows the current gain or loss of an open position. The formula differs based on contract type.

For linear perpetual contracts (USDT-margined):

• Long positions:
  Unrealized P&L = (Current Mark Price - Entry Price) × Position Size in Contracts
• Short positions:
  Unrealized P&L = (Entry Price - Current Mark Price) × Position Size in Contracts

For inverse perpetual contracts (BTC-margined):

• Long positions:
  Unrealized P&L = Position Size in USD / Entry Price - Position Size in USD / Mark Price
• Short positions:
  Unrealized P&L = Position Size in USD / Mark Price - Position Size in USD / Entry Price

The mark price is used instead of the last traded price to prevent manipulation. Bybit updates this value in real time. The position size must be entered in the correct denomination—either number of contracts or USD value, depending on the interface. This calculation helps traders assess ongoing exposure and decide whether to adjust or close positions.

Calculating Realized Profit and Loss

Realized P&L is computed when a position is fully or partially closed. The formula again depends on contract type and direction.

For USDT-margined linear contracts:

• Closing a long position:
  Realized P&L = (Exit Price - Entry Price) × Number of Contracts Closed
• Closing a short position:
  Realized P&L = (Entry Price - Exit Price) × Number of Contracts Closed

For BTC-margined inverse contracts:

• Closing a long position:
  Realized P&L = (Position Value in USD / Entry Price) - (Position Value in USD / Exit Price)
• Closing a short position:
  Realized P&L = (Position Value in USD / Exit Price) - (Position Value in USD / Entry Price)

Fees also impact realized P&L. Bybit charges a taker fee when closing a position via a market order, typically 0.075%, and a maker fee of 0.025% for limit orders that add liquidity. These fees are deducted from the final profit or added to the loss. The platform automatically subtracts fees when calculating net realized P&L.

Using Bybit’s Interface to Monitor P&L

Bybit provides real-time P&L tracking in the trading interface. To view these metrics:

• Navigate to the Derivatives or Spot trading section
• Open the Positions tab for active trades
• Check the Unrealized P&L column for current open position value
• After closing a trade, go to Order History or Wallet Fund Records
• Look for entries labeled Realized P&L or Closing P&L

The P&L ratio (also known as Return on Equity) is displayed as a percentage, calculated as:
Realized P&L / Initial Margin × 100%

This helps assess efficiency of capital use. Traders can filter records by date, symbol, or type. The Wallet Fund Records section logs every P&L event, including funding payments, which also affect net profit.

Step-by-Step Example: Calculating P&L on a USDT-Margined Trade

Consider a trader opening a long position on BTC/USDT perpetual contract:

• Entry Price: $60,000
• Position Size: 1 BTC (100 contracts at $100 each)
• Leverage: 10x
• Initial Margin: $6,000
• Exit Price: $63,000
• Taker Fee: 0.075%

To calculate realized P&L:

• Gross Profit:
  ($63,000 - $60,000) × 1 = $3,000
• Trading Fee:
  $63,000 × 0.00075 = $47.25
• Net Realized P&L:
  $3,000 - $47.25 = $2,952.75

The P&L ratio is:
$2,952.75 / $6,000 × 100% ≈ 49.21%

This indicates a nearly 50% return on the margin used.

Common Pitfalls and How to Avoid Miscalculations

Traders often misinterpret P&L due to overlooked factors. One common error is using the last traded price instead of the mark price for unrealized calculations. Bybit uses mark price to prevent liquidation manipulation, so relying on the wrong price leads to inaccurate estimates.

Another mistake is ignoring funding fees. In perpetual contracts, traders pay or receive funding every 8 hours. Long positions may pay shorts when funding rates are positive. These fees appear in Wallet Fund Records and reduce net profit over time.

Partial closures also complicate P&L. When closing part of a position, Bybit uses FIFO (First In, First Out) to determine which entry price applies. For example, if a trader opens two long positions at $50,000 and $52,000, closing 0.5 BTC first applies the $50,000 entry. Misunderstanding this leads to incorrect profit expectations.

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Frequently Asked Questions

Q: Does Bybit include funding fees in the realized P&L display?

No, funding fees are recorded separately in the Wallet Fund Records. They are not included in the main realized P&L figure shown in the Positions tab. Traders must manually sum funding payments or receipts to determine total net profit.

Q: Why does my unrealized P&L show a loss even when the market price is above my entry price?

This can occur if the mark price is lower than the last traded price. Bybit uses mark price for P&L and liquidation calculations. Sudden price spikes or low liquidity can cause divergence between mark and last price, affecting unrealized values.

Q: How does Bybit calculate P&L for partial position closures?

Bybit applies the FIFO (First In, First Out) method. The earliest opened portion of a position is closed first. The realized P&L is based on the entry price of that specific segment. The remaining position retains the average entry price of the unclosed portions.

Q: Can I export my P&L history for tax reporting?

Yes, Bybit allows users to export trading history. Go to Account → Transaction History → Export Data. Select the desired date range and format (CSV or Excel). The exported file includes timestamps, trade details, fees, and realized P&L, suitable for tax documentation.