Calculation of the Proceeds and Fees in Futures

The user’s profit and loss come from three aspects: the expense of the fee, the income or expense of the funding fee, and the profit and loss of the closing position.

Fees

As a liquidity taker (taker) need to pay fee= position value x taker fee (0.06%);

As a liquidity provider (maker) only need to pay a small fee = position value x maker fee (0.02%);

You can also join the MEXC Futures VIP program and enjoy a discount on fees.

Funding fees

The funding fee will be charged every 8 hours and will be displayed on the Futures Trading page. Depending on the positive or negative funding rate, as well as the long or short direction of the user’s position, the user will earn or spend capital expenses. That is, if the user’s position is long, the funding rate is positive, and the funding fee needs to be paid; if the funding rate is negative, the funding fee can be earned.

Funding fee = funding rate * position value;

Profit and loss calculation

Floating P&L (Unrealized P&L)

USDT-margined Futures

Long position = (reasonable price – average open price) * number of positions;

Short position = (average open price – reasonable price) * number of positions;

Coin-margined Futures

Long position = (1 / average opening price – 1 / reasonable price) * number of positions;

Short position = (1/ reasonable price – 1 / average open price) * number of positions;

Closing P&L (Realized P&L)

USDT-margined Futures

Long position = (Closing price – average opening price) * Number of positions;

Short position = (average opening price – closing price) * number of positions;

Coin-margined Futures

Long position = (1 / average opening price – 1 / average closing price) * number of positions

Short position = (1 / average closing price – 1 / average price of open position) * number of positions

For example, if a user buys 0.1 BTC long position at the price of 50,000 in the BTCUSDT futures in the role of Taker. The user uses 500USDT as margin and uses 10 times leverage.

taker fee =0.06% maker fee = 0.02% funding rate = -0.025%

The user needs to pay a handling fee: 50000 * 0.1 * 0.06% = 3 USDT;

The user can obtain (the funding rate is negative) the funding fee: -50,000 * -0.025% = 1.25USDT

Suppose the user closes 0.1 BTC futures position as a Maker sell at the BTC price of 60,000 USDT:

Then the profit and loss of the closing position = (60,000-50,000) * 0.1 = 1,000USDT;

Closing fee = 60,000 *0.02% = 1.2 USDT

So the user’s total realized P&L = 1000+3+1.25 -1.2=1003.05 USDT

In addition, you can view the commission and funding rates charged for each transaction history, as well as the profit and loss of each order.

Closing Thoughts

You can simply calculate your earnings and learn from historical trading to improve gradually on MEXC Futures trading.

Disclaimer: Trading crypto involves significant risk and can result in the loss of your invested capital. The materials are not related to the provision of advice regarding investment, tax, legal, financial, accounting, consulting, or any other related services and are not recommendations to buy, sell, or hold any asset. MEXC Learn solely provides information, but not financial advice. You should ensure that you fully understand the risk involved before investing.