Standard Futures | Understanding PnL Calculations for Trading Pairs Using Non-USDT Quote Currency

I. Profit and Loss (PnL) Calculations

When trading BIST100/TRY, the initial margin used will remain as USDT, and the exchange rate calculations will occur when opening and closing positions.

Calculation for losses = [Transaction direction * Margin * Leverage * Exchange rate when opening position * (Close price - Open price) / Open price] / Exchange rate when closing position

Case:
Using the PnL calculations for BIST100/TRY as an example, where the quote currency is TRY and the margin is USDT.
User A opens a long position with 100 USDT (5x leverage) on BIST100/TRY at a price of 8,000. At the position opening time, 1 USDT = 30 TRY.

	BIST100/TRY	USDT/TRY	PnL Calculations	PnL
Time 1	10,000	30	= [1 * 100 * 5 * 30 * (10,000 - 8,000) / 8,000] / 30	+125 USDT
Time 2	10,000	25	= [1 * 100 * 5 * 30 * (10,000 - 8,000) / 8,000] / 25	+150 USDT
Time 3	10,000	35	= [1 * 100 * 5 * 30 * (10,000 - 8,000) / 8,000] / 35	+107.14 USDT
Time 4	12,000	35	= [1 * 100 * 5 * 30 * (12,000 - 8,000) / 8,000] / 35	+214.29 USDT

Based on the example above, it can be observed that:

PnL will change with the changes of USDT/TRY exchange rate, even when the price of the pair remains unchanged.
User's profits will increase when the USDT/TRY exchange rate drops. Conversely, profits will decrease as the USDT/TRY exchange rate rises.
When the price of BIST100/TRY fluctuates, the final PnL will be calculated based on the current exchange rate of USDT/TRY for opening and closing positions.

II. Exchange Rate Calculations for Open/Close Positions When Using Fiat as Quote Currency

Currently, some of the Standard Futures trading pairs use fiat currencies as the quote currency, and the exchange rate is updated every 10 minutes.

Take BIST100/TRY as an example:

When opening position: The user opens a position using USDT as principal, which is then converted to TRY to be used as the margin, based on the TRY/USDT exchange rate during the position opening time. The position amount will be determined according to the chosen leverage.
When closing position: PnL will be calculated in TRY based on the BIST100/TRY price. The PnL amount in TRY is then converted into USDT using the TRY/USDT exchange rate during the position closing time to calculate the realized PnL.

Note:

As the exchange rate is only updated every 10 minutes, losses may occur in cases when the exchange rate fluctuates significantly. Please evaluate the risks before opening or closing a position.

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