Skip to main content

Is ROE the Same as Realised PNL on BitMEX?

  • Updated

No. ROE (Return on Equity) and realised PNL are different metrics. ROE measures your return relative to your trading capital and incorporates leverage: ROE% = PNL% x Leverage. Realised PNL measures the actual financial gain or loss from your trades. ROE% can be significantly higher than PNL% because leverage amplifies the percentage return.

 

What Is ROE on BitMEX?

ROE (Return on Equity) is a percentage that indicates the return generated on your equity – the capital you committed to the position. It shows how much profit you made relative to your initial margin investment.

The formula for calculating ROE is:

ROE% = PNL % * Leverage

ROE incorporates leverage into the calculation. A small price movement can produce a large ROE% when high leverage is used, because the initial margin (equity) represents a fraction of the total position value.

 

What Is the Difference Between ROE and Realised PNL?

Realised PNL measures the actual profit or loss from your trades in absolute terms. It is calculated from the difference between your average entry and exit prices, factoring in the number of contracts, the contract multiplier, and fees.

The key distinction: 

  • ROE% incorporates leverage. It reflects the return on the margin you committed.
  • Realised PNL does not incorporate leverage. It reflects the actual financial outcome.

Example: If your PNL is 2% and you used 10x leverage, your ROE% is 20% (2% x 10). The leverage amplifies the ROE% beyond the actual PNL percentage.

 

Can ROE Be Higher Than PNL?

ROE% is almost always higher than the PNL percentage when leverage exceeds 1x. Two positions with identical contract values but different leverage levels produce the same realised PNL but different ROE% figures.

  • A position using 10x leverage displays a lower ROE% than the same position at 50x leverage.
  • The actual realised PNL remains identical for both positions because leverage does not affect PNL.

ROE% is useful for measuring capital efficiency – how much return you generated per unit of margin committed. Realised PNL is the metric that shows your actual financial result.

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.