How to Calculate PnL
Calculating PnL for Trades
Calculating PnL for a Long, Short or Straddle trade
To calculate PnL for a perpetual option trade, navigate to the trade page and select the calculator icon in the top right corner of the trade tool.
Once in the calculator interface, select the token you would like the PnL denominated in all the way at the top (WETH, USDC). In our case, we will choose USDC. Then select your position type (long, short or straddle). In our example case, we have selected long. Finally, choose your initial deposit in WETH or USDC. We have deposited 1 WETH as our initial deposit with an exit price of $3,000 USDC. Observe how your time to liquidation, PnL, leverage and theta change as you move the sliding scale.
If you adjust the exit price to be higher, notice your PnL will increase exponentially since your leverage is increasing as the price changes, however your opening cost will increase as well. If the price was to decrease in a long, your position will be unprofitable but you won't be closer to liquidation. If the price decreased enough, you may even profit since long positions are a type of straddle. This is great for altcoins where the price often can move substantially in one direction (greater than 50% price moves). In the below scenario, the price moved against you from $3,000 USDC to $500 USDC in a long position and you profited from that trade. Your positions are protected on the downside if the price moves far enough away from you.
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