Bitget copy trading: announcement on updated futures copy trading ROI calculation
Bitget
2024-05-24 03:00
Thank you for your continued attention to and support for Bitget futures copy trading. To further improve transparency and help you fully understand the calculation of ROI for positions and orders, we are pleased to announce the latest ROI and PnL calculation for futures copy trading:
We have updated how ROI and PnL are calculated. Starting from today, both ROI and PnL will be calculated based on the average entry price of the position rather than the previous entry price. Please take note of this update and adjust your trading strategy accordingly.
1. Position and order ROI calculation
• ROI = (unrealized PnL or realized PnL ÷ position margin) × 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:
• Calculation of unrealized PnL:
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.
• Calculation of realized PnL:
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:
Elite trader A opens a long position in btcusdT for 25,000 USDT with a quantity of 0.8. An hour later, elite trader A 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
1. Calculating the ROI based on the average entry price allows you to accurately assess the performance of your open positions. This calculation accounts for the cost impact of adding positions, resulting in a comprehensive and unbiased performance evaluation.
2. Representation of performance: PnL may be either positive (profit) or negative (loss), serving as an intuitive representation of performance in futures elite trading.
We hope this announcement helps you to better understand the calculation of PnL for elite 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.
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