Required Legal Notice: Virtual currencies, real risks. The only guarantee in crypto is risk. Read more

Required Legal Notice: Virtual currencies, real risks. The only guarantee in crypto is risk. Warning: The value of your virtual currencies can rise or fall sharply, and your initial investment may be lost completely; virtual currencies are not covered by the guarantee funds that cover bank deposits; there is no legal mechanism on the virtual currencies market to prevent market manipulation or insider dealing; virtual currencies depend entirely on a specific computer technology and infrastructure, which in certain cases may be very recent and not yet adequately tested; if one loses the identification code or password giving access to the virtual wallet in which the virtual currency is stored, the currency held therein will be irretrievably lost; virtual currencies are currently accepted as a means of payment to a limited extent, and in most countries there is no legal obligation to accept them; for more information about the risks associated with an investment in virtual currencies, we advise you to read the Wikifin page What is a cryptocurrency? | Wikifin.

Understanding profit & loss calculations

Last updated: 9 жніўня 2025 г.

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

Example:

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

Example:

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.

Understanding profit & loss calculations

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