What is Futures Trading?
What are long and short in futures trading?
- By going long, a trader buys a futures contract with the expectation that its value will increase in the future.
- Conversely, if a trader anticipates that the contract price will decrease in the future, they can sell a futures contract to go short.
Contract Size | Entry Price | Exit Price | Profit and Loss (PNL) |
1 BTC | 5,000 USD | 5,500 USD | 500 USD |
Contract Size | Entry Price | Exit Price | Profit and Loss (PNL) |
1 BTC | 5,000 USD | 4,500 USD | 500 USD |
How to trade on Binance Futures?
How to calculate unrealized PNL and ROI%?
USDⓈ-M Futures
- Unrealized PNL = Position Size * Order Direction * (Mark Price - Entry Price)
- ROI% = Unrealized PNL in USDT or USDC / Entry Margin = ( (Mark Price - Entry Price) * Order Direction * Size) / (position_amount * contract_multiplier * mark_price* IMR)
- IMR = 1 / Leverage
- Unrealized PNL = Position Size * Order Direction * (Last Price - Entry Price)
- ROI% = Unrealized PNL in USDT or USDC / Entry Margin = ( (Last Price - Entry Price) * Order Direction * Size) / (position_amount * contract_multiplier * mark_price* IMR)
- Order Direction:
- 1 for long orders
- -1 for short orders
- Order Direction:
COIN-M Futures
- Unrealized PNL = position_size * contract_multiplier * Order Direction * (1 / Entry Price - 1 / Mark Price)
- ROI% = Unrealized PNL * Mark Price / abs(Size) * contract_multiplier * IMR
- Unrealized PNL = position_size * contract_multiplier * Order Direction * (1 / Entry Price - 1 / Last Price)
- ROI% = Unrealized PNL * mark_price / abs(Size) * contract_multiplier * IMR
- Introduction to Binance Futures
- USDⓈ-Margined Futures Contract Specifications
- Binance COIN-Margined Futures Contract Specifications
- A Quick Guide to Coin-Margined Quarterly Contracts