How to calculate my unrealized PNL (Profit and Loss) correctly on Bybit?

Understanding Unrealized PNL Definition

1. Unrealized PNL refers to the floating profit or loss on open positions that have not yet been closed.

2. It is calculated in real time based on the current market price versus the entry price of your position.

3. This value fluctuates with every tick in the underlying asset’s price and does not reflect actual cash flow until the position is settled.

4. On Bybit, unrealized PNL is displayed separately for each active contract and updates dynamically on the positions tab.

5. It is denominated in the quote currency of the trading pair — for example, USDT for BTC/USDT perpetual contracts.

Formula Used by Bybit for Linear Contracts

1. For long positions: Unrealized PNL = (Mark Price − Entry Price) × Position Size.

2. For short positions: Unrealized PNL = (Entry Price − Mark Price) × Position Size.

3. Position Size is expressed in the base asset — e.g., 1 BTC for a 1-BTC long on BTC/USDT.

4. Mark Price is used instead of Last Traded Price to prevent manipulation and ensure fairness during volatile conditions.

5. Bybit applies this calculation automatically across all linear perpetual and inverse futures contracts, adjusting for contract multipliers where applicable.

Impact of Leverage and Margin Mode

1. Unrealized PNL itself is independent of leverage — it only depends on price difference and quantity held.

2. However, leverage affects how much margin is required and influences liquidation risk, which indirectly alters how unrealized PNL is perceived in context.

3. In isolated margin mode, unrealized PNL impacts only the allocated margin for that specific position.

4. In cross margin mode, unrealized PNL contributes to the overall wallet balance and can affect other open positions’ maintenance margin requirements.

5. Bybit displays unrealized PNL both in quote currency and as a percentage of initial margin, offering dual perspectives for risk assessment.

Role of Funding Rate in Unrealized PNL

1. Funding payments are settled periodically and impact realized equity but do not alter the core unrealized PNL formula.

2. However, funding accruals accumulate in your wallet balance and may shift your effective entry point if you adjust position size mid-cycle.

3. Bybit includes accrued funding in the “Wallet Balance” field but keeps it separate from unrealized PNL in the positions interface.

4. Negative funding received (as a short during positive funding periods) reduces your wallet balance but does not subtract from unrealized PNL directly.

5. The platform recalculates unrealized PNL strictly on trade execution parameters — entry price, mark price, and size — excluding funding history.

Frequently Asked Questions

Q1: Does unrealized PNL include transaction fees?A1: No. Transaction fees are deducted from realized PNL upon position closure and do not factor into unrealized PNL calculations.

Q2: Why does my unrealized PNL show zero even though price has moved?A2: This occurs when the position size is zero, the order is still pending, or the position was opened with zero quantity due to insufficient margin or failed execution.

Q3: Can unrealized PNL go negative while my position remains open?A3: Yes. A decline in mark price below entry for longs—or rise above entry for shorts—immediately generates negative unrealized PNL, visible in real time.

Q4: Is unrealized PNL taxed before closing the position?A4: Tax treatment varies by jurisdiction. Bybit does not report trades to tax authorities; users must consult local regulations regarding recognition of unrealized gains or losses.