PnL Calculations

Understanding how profit and loss (PnL) is calculated is essential to tracking your trading performance and managing risk. Kraken Derivatives US supports real-time PnL visibility for both open and closed futures positions.

Unrealized PnL reflects the current profit or loss of an open position. It updates continuously based on market price movements.

Formula: Unrealized PnL = (Current Mark Price - Entry Price) × Contract Size

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    Long position: You gain if the market price goes up.

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    Short position: You gain if the market price goes down.

The mark price used is typically the best bid (for long positions) or best ask (for short positions).

Unrealized PnL is included in your account equity but does not impact your actual balance until the position is closed.

Realized PnL is the profit or loss that becomes final once you close a position. It accounts for the difference between your entry and exit prices, adjusted for entry and exit fees.

Formula:

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    Realized PnL = (Exit Price - Entry Price) × Contract Size - Total Fees

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    Total Fees = Entry Fee + Exit Fee (both sides of the trade)

When a trade is closed, the realized PnL is credited or debited to your account balance.

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    Entry Fee: Deducted immediately from your account balance when a position is opened. This means it will not show in unrealized PnL.

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    Exit Fee: Applied when a position is closed.

While the entry fee affects your available balance right away, both fees are ultimately reflected in your realized PnL after the trade is closed.

Brokerage services are provided by NinjaTrader Clearing, LLC doing business as Kraken Derivatives US, a Futures Commission Merchant registered with the Commodity Futures Trading Commission (CFTC) and a member of the National Futures Association (NFA ID #0309379).

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