Bitget Copy Trading: Updates on PnL calculation

🔥 Please refer to the following updated announcement:

https://www.bitget.com/support/articles/12560603810169

Thank you for your interest in Bitget futures copy trading. This announcement aims to provide clarity on the methodology used to calculate PnL for copy trades. Below, we outline the calculation process with examples to help you better understand the logic of copy trading.

1. Calculation of a futures copy trade's PnL

The formula for calculating PnL for a futures copy trade is as follows:

• PnL = (Unrealized PnL or Realized PnL) ÷ Position Margin) x 100%

Unrealized PnL and realized PnL are based on the difference between the current market price and the average entry price of the position, calculated as follows:

Unrealized PnL equations for open positions

Long orders = (current market price – average entry price) × quantity ÷ latest mark price of margin

Short orders = (average entry price – current market price) × quantity ÷ latest mark price of margin

Realized PnL equations for closed positions

Long orders = (exit price – average entry price) × quantity ÷ latest mark price of margin

Short orders = (average entry price – exit price) × quantity ÷ latest mark price of margin

2. Calculation of average entry price

The average entry price of a position will change as you add new positions. The calculation formula is as follows:

• Average entry price = total position value in USDT ÷ total position size.

For example:

Copier A follows an elite trader and opens a long position in BTCUSDT for 25,000 USDT with a quantity of 0.8. An hour later, Copier A copies the elite trader again and opens a long position in BTCUSDT for 28,000 USDT with a quantity of 0.6. The average entry price of the position is calculated as follows:

• Total futures position value in USDT = (0.8 × 25,000) + (0.6 × 28,000) = 20,000 + 16,800 = 36,800 USDT

• Total futures position quantity = 0.8 + 0.6 = 1.4 BTC

• Average entry price = 36,800 USDT ÷ 1.4 BTC = 26,285.7 USDT

3. Rationale

a. Accuracy of performance: Calculating the PnL using the average entry price of a position provides an accurate assessment of performance since the opening of the position, showing how your open positions and closed positions are performing. This calculation accounts for the cost impact of adding positions, resulting in a comprehensive and unbiased performance evaluation.

b. Representation of performance: PnL may be either positive (profit) or negative (loss), serving as an intuitive representation of performance in futures copy trading.

We hope this announcement helps you to better understand the calculation of PnL for copy trades. Should you have any questions or require further assistance, please don't hesitate to contact our customer service team. Thank you for your trust and support in Bitget Futures Copy Trading.