Commonly asked on live chat, this article seeks to explain the reason why your Closed P&L may be lower than expected compared to your unrealized P&L. In summary, it is due to the inclusion of trading fees and funding fees when calculating Closed P&L. Please refer to the table below for a quick summary of the differences.
| Unrealized P&L | Closed P&L | |
| Position P&L | Yes | Yes |
| Fee to open position | No | Yes |
| Funding fees while holding position | No | Yes |
| Fee to close position | No | Yes |
| Estimated or Final P&L | Estimated based on Last Traded Price | Final P&L based on actual closing order exit price after deducting trading fees and funding fees |
Let us first understand what is Unrealized P&L shown inside your Positions tab
Unrealized P&L shown inside the Positions tab has the following key characteristics
1) It is purely meant as a quick estimate of a position's estimated P&L. This is not the final position P&L.
2) This estimated P&L is calculated based on the platform's Last Traded Price (LTP). If LTP fluctuates, the unrealized P&L will also increase or decrease accordingly.
3) The formula to calculate the P&L for can be found inside our help center articles
- For Bybit Inverse Perpetual P&L calculations, please refer to this article
- For Bybit USDT Perpetual P&L calculations, please refer to this article
4) Unrealized P&L does not take into consideration any trading fees and funding fees that have been paid out in order to open and hold the position.
Next, let us understand what is Closed P&L
Closed P&L has the following key characteristics.
1) This is the final position P&L after closing the position
2) It is calculated based on the average exit price of your closing orders. If the closing order is eventually executed over multiple exit prices, the Closed P&L will also accurately account for these differences. To find out the actual exit prices of your closing orders, please visit your Trade History
3) The formula to calculate the P&L for can be found inside our help center articles
- For Bybit Inverse Perpetual P&L calculations, please refer to this article
- For Bybit USDT Perpetual P&L calculations, please refer to this article
4) Closed P&L does take into consideration all trading fees and funding fees that have been paid out in order to open, hold and close the position.
Lastly, let us refer to an example:
1) Unrealized P&L calculation breakdown:
LTP = 42,116.50
Entry Price = 42,151.50
Qty: 10,000
Unrealized P&L = - 0.00019715 BTC (The positive unrealized P&L inside the image above shows up to 4 decimal places, hence its showing 0.0001 BTC)
2) Trading Fee and Funding Fee calculation breakdown:
Fee to open = (10,000/42,151.50 x 0.06% = 0.00014235 BTC (Truncate at 8 decimal place)
Fee to close = (10,000/42,270.50 ) x 0.06% = 0.00014192 BTC (Truncate at 8 decimal place)
Total Trading Fee (Red Box) = 0.00014235 BTC + 0.00014192 BTC = 0.00028427 BTC
Total Funding Fee (Blue Box) = 0.00002374 BTC
3) Closed P&L calculation breakdown:
Average Final Exit Price = 42,278.50
Average Entry Price = 42,151.50
Qty: 10,000
Position P&L = 10,000 x [(1 / 42,151.50) - ( 1 / 42,278.50)] = 0.00071265 BTC
Closed P&L
= Position P&L - Total Trading Fee - Total Funding Fee
= 0.00071265 BTC - 0.00028427 BTC - 0.00002374 BTC
= 0.00040464 BTC
Please refer to the following articles to find out more details about trading fees and funding fees.
To understand how leverage affects your position's P&L%, please refer to this article