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How is Net Trading PnL calculated?

  • Updated

Net Trading PnL represents your total net profit or loss over a selected period. It is calculated as Gross Trading PnL minus Total Funding minus Total Fees, giving you a comprehensive view of actual trading performance after all costs.

 

What is the Net Trading PnL formula?

Net Trading PnL shows your true profit or loss for a chosen time period by accounting for all costs associated with trading activity. The formula used on the BitMEX PnL dashboard is:

Net Trading PnL = Gross Trading PnL - Total Funding - Total Fees

Each component of the formula captures a distinct element of trading performance:

  • Gross Trading PnL is the raw profit or loss from your trades before any deductions. Gross Trading PnL includes both realised gains and losses from closed positions and reflects the direct outcome of your trading decisions without factoring in platform costs.
  • Total Funding covers funding payments made or received while holding positions in perpetual contracts. Funding payments occur at regular intervals and can either add to or reduce your net result depending on the funding rate and your position direction. Positive funding rates mean long holders pay short holders, while negative rates reverse the flow.
  • Total Fees includes all trading fees incurred during the period, encompassing both maker and taker fees charged when orders are filled. The cumulative fee total can be significant for high-frequency traders who execute a large number of orders within the selected time frame.

By subtracting funding and fees from your gross PnL, the Net Trading PnL metric gives you an accurate picture of how much you have actually earned or lost from trading activity over the selected period. Reviewing Net Trading PnL regularly helps traders identify whether costs are eroding profits and where adjustments to strategy or order types could improve net returns.

The PnL dashboard allows you to select different time periods for analysis, making it straightforward to compare net performance across days, weeks, or months. Traders can use these comparisons to spot trends in profitability and evaluate the effectiveness of strategy changes over time.

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