Skip to main content

Does Leverage affect my PNL?

  • Updated

Leverage does not directly affect your Profit and Loss (PNL). Instead, it comes into play when determining the amount of margin allocated to your position; higher leverage requires less margin, allowing you to open larger positions with a smaller backing. So, while leverage itself does not affect your PNL, it can impact your position size, which in turn can influence PNL. 

 

What actually affects my PNL?

Aside from position size, PNL is affected by the difference between your Average Entry Price and Exit Price, Trading Fees, and Multiplier. 

 

The calculation for it is the following:

Unrealised PNL = Number of Contracts * Multiplier * (1/Average Entry Price - 1/Exit Price)
Realised PNL = Unrealised PNL - taker fee + maker rebate -/+ funding payment 

 

To understand further how Realised PNL is calculated, you can refer to the links below: 

- How do I manually calculate my Realised PNL?

- Profit/Loss Guide

Related articles

This website is operated by HDR Global Trading Limited, a company incorporated under the International Business Companies Act of 1994 of the Republic of Seychelles with a company number of 148707 and registered address at Global Gateway 8, Rue de la Perle, Providence Mahé, Seychelles (“HDR”). HDR wholly owns BitMEX, a Bitcoin-based trading platform.


Access to trading or holding positions on BitMEX is prohibited for any person or entity that is located, incorporated or otherwise established in, or a citizen or a resident of: (i) the United States of America, Québec (Canada), the Hong Kong Special Administrative Region of the People’s Republic of China, the Republic of Seychelles, Bermuda, Cuba, Crimea and Sevastopol, Iran, Syria, North Korea or Sudan; (ii) any state, country or other jurisdiction that is embargoed by the United States of America; or (iii) any other jurisdiction where the services offered by BitMEX are restricted (collectively “Restricted Jurisdictions”). If it is determined that any BitMEX user has given false representations as to their location, incorporation, establishment, citizenship or residence, or HDR detects a user is from a Restricted Jurisdiction as described above, HDR reserves the right to immediately close their accounts and liquidate any open positions. HDR may, in its sole discretion, implement controls to restrict access to the BitMEX trading platform in any of the Restricted Jurisdictions.