Crypto Futures Profit & Loss Calculator
Calculate potential PNL, ROE, and Liquidation Price for Long and Short positions.
How to Use the Crypto Futures Calculator
In the highly volatile world of cryptocurrency trading, futures contracts allow traders to speculate on the future price of assets like Bitcoin (BTC) or Ethereum (ETH). Using leverage can amplify your gains, but it also increases your risks significantly. This calculator helps you map out your strategy before you hit the "Trade" button.
Understanding Key Metrics
- Entry Price: The price at which you intend to open your position.
- Exit Price: Your target price for taking profit or cutting losses.
- Leverage: The multiplier of your capital. For example, 10x leverage means a $1,000 margin allows you to control a $10,000 position.
- Initial Margin: The actual amount of USDT you are committing to the trade from your wallet.
- Liquidation Price: The price at which your margin is no longer enough to cover potential losses, resulting in the exchange closing your position automatically.
The Math Behind the Calculator
The calculation differs based on whether you are going Long (betting the price goes up) or Short (betting the price goes down).
For Long Positions:
PNL = (Exit Price – Entry Price) * (Margin * Leverage / Entry Price)
ROE% = (PNL / Margin) * 100
For Short Positions:
PNL = (Entry Price – Exit Price) * (Margin * Leverage / Entry Price)
ROE% = (PNL / Margin) * 100
Realistic Example
Imagine you have $1,000 (Margin) and you want to go Long on BTC at $60,000 using 10x leverage. Your total position size is $10,000. If Bitcoin rises to $66,000 (a 10% increase), your profit would be $1,000 (a 100% ROE). However, if the price drops to $54,000, your entire $1,000 margin would be lost (Liquidation).
Risk Management Tips
Always keep an eye on your Liquidation Price. High leverage brings the liquidation price closer to your entry price, leaving very little room for market fluctuations. Professional traders often use stop-loss orders to exit a position before liquidation occurs.