In Australia, Beaufort Fiduciaries Pty Ltd (ACN 162 139 871, AFSL No. 545124) provides wholesale clients with access to derivatives where the underlying assets are digital assets. Derivatives are complex, regulated financial products that are difficult to understand and may not be suitable for inexperienced investors. For eligibility, terms and conditions click here. Krak Pay is offered by Bit Trade Australia Pty Ltd (ACN 163 237 634), Authorised Representative of Flexewallet Pty Ltd (AFSL 448066). This information is general in nature and does not take into account your personal objectives, financial situation or needs. You should consider whether it is appropriate for you and read the relevant disclosure documents before making any decision.

Understanding profit & loss calculations

Last updated: August 9, 2025

Profit/loss calculation depends on the contract being traded. Profit/loss and Liquidation calculators are available on the platform UI under username dropdown. These calculators are only to be used for indicative purposes only, please manage your own risk appropriately. Kraken Derivatives does not have any liability for misuse of this tool and when trading you should refer to the numbers that the platform returns, not the values in this calculator.

Coin-M inverse derivatives

For Coin-M inverse derivatives, profit/loss is in the base currency. Profit or loss is calculated as:

Profit or loss in Base Currency = ( 1 / Futures Entry Price - 1 / Derivatives Exit Price ) * Position Size

Trading requires an Ether (ETH) deposit to the Ether-Dollar Futures margin account

Buy 10,000 derivatives at 2500 USD per ETH

Sell 10,000 derivatives at 2800 USD per ETH.

Profit is ( 1 / 2500 - 1 / 2800 ) * 10,000 = 0.42857 ETH

Multi-M linear derivatives

For multi-collateral linear derivatives, profit/loss is in USD**. Profit or loss is calculated as:

Profit or loss in USD = ( Derivatives Exit Price - Derivatives Entry Price ) * Position Size

Trading requires a deposit of supported collateral currencies into the Multi-Collateral margin wallet

Buy 5 BTC derivatives at 35,000 USD per BTC

Sell 5 BTC derivatives at 40,000 USD per BTC

Profit is (40,000 - 35,000) * 5 BTC = 25,000 USD

**The default profit/loss currency is in USD for multi-collateral linear derivatives, however, after opening a position on the platform, a trader can select the profit currency to be realized in one of the supported collateral currencies, additional fees apply. Losses on multi-collateral derivatives are always realized in USD.

The decimal and thousands separators shown in this article may differ from the formats displayed on our trading platforms. Review our article on how we use points and commas for more information.

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