Understanding Account Equity
Account equity represents your total financial standing in USDT-margined contracts, calculated as:
Account Equity = Account Balance + Realized P&L + Unrealized P&L
Key Components Explained
Account Balance
Your USDT holdings in the contract account, reflecting:
- Initial equity
- Deposits
- Withdrawals
- Settled realized P&L from trading
Formula: Account Balance = Opening Equity + Deposits - Withdrawals
Unrealized P&L
Fluctuating profit/loss from open positions, recalculated with each price change.
Calculation Methods:
- Long Position:
(Mark Price - Entry Price) / Entry Price * Contract Size (USDT) - Short Position:
(Entry Price - Mark Price) / Entry Price * Contract Size (USDT)
Example:
A trader holds:
- BTC Perpetual: 100 USDT long @ $5,000 (Current: $8,000)
- BTC Quarterly: 50 USDT long @ $5,200 (Current: $8,500)
Calculations:
- Perpetual P&L: ($8,000-$5,000)/$5,000 *100 = +60 USDT
- Quarterly P&L: ($8,500-$5,200)/$5,200 *50 = +31.73 USDT
Total Unrealized P&L: 91.73 USDT
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Realized P&L
Locked-in profit/loss from:
- Closed positions
- Trading fees
- Funding payments
Calculation Methods:
- Long Position:
(Exit Price - Entry Price) / Entry Price * Closed Size (USDT) - Short Position:
(Entry Price - Exit Price) / Entry Price * Closed Size (USDT)
Example:
Closing:
- Perpetual: 100 USDT long @ $5,000 (Closed @ $4,000)
- Quarterly: 50 USDT long @ $5,200 (Closed @ $5,500)
Calculations:
- Perpetual P&L: -20 USDT
- Quarterly P&L: +2.88 USDT
- Fees: -0.07 USDT
Net Realized P&L: -17.19 USDT
Pricing Mechanisms
Entry Price vs. Position Price
| Metric | Definition | Impacted By |
|---|---|---|
| Entry Price | Average opening cost across merged positions | New openings only |
| Position Price | Dynamic reference for P&L calculations | Settlements & adds |
Settlement Example:
- Pre-settlement: Entry = Position = $10,666.66
Post $12,000 settlement:
- Position adjusts to $12,000
- Entry remains $10,666.66
Adding 200 USDT @ $12,800:
- New Entry: $11,520
- New Position: $12,320
Performance Metrics
Position Returns
Reflects current open position profitability:
Formula: Return = (Current Price - Entry Price) / Entry Price * Position Size
10x Leverage Example:
- Open 100 USDT long @ $10,000
- Price rises to $11,500:
Return = ($11,500-$10,000)/$10,000 *100 = +15 USDT
Closed Position Analysis
- Closed P&L: Post-last-settlement profit
- Total Return: Lifetime position performance
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FAQ Section
Q: Why does my position price change after settlement?
A: Settlements convert unrealized to realized P&L, resetting the position price to the settlement value while preserving your entry price.
Q: How are fees incorporated in P&L?
A: Trading fees are deducted from realized P&L calculations upon order execution.
Q: Does partial closing affect my average prices?
A: No - both entry and position prices remain unchanged during partial closes.
Q: Why is my closed position return higher than the closing P&L?
A: Total return includes all settlement gains, while closing P&L only reflects post-last-settlement performance.
Q: How does leverage impact these calculations?
A: Leverage multiplies both potential gains and losses proportionally across all formulas.
Q: Where can I see detailed historical P&L?
A: Most platforms provide trade history reports showing complete performance metrics.
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