Understanding Unrealized P&L
Unrealized Profit and Loss (P&L) refers to the current floating profit or loss generated by your open positions in cryptocurrency trading. Unlike realized P&L, these figures fluctuate with market prices until positions are closed.
Key Features:
- Dynamic calculation based on live market data
- Impacts margin requirements and liquidation risks
- Displayed in real-time on trading dashboards
Core Crypto Trading Concepts
1. Spot Trading (Coin-to-Coin)
Spot trading involves direct exchange between digital assets like:
- Stablecoins (USDT, USDC)
- Major cryptos (BTC, ETH, OKB)
- Platform-native tokens
Popular trading pairs are organized into dedicated market sections for efficient trading.
2. Critical Pricing Mechanisms
Mark Price Formula
Used to calculate unrealized P&L while minimizing unnecessary liquidations:
Mark Price = Spot Index Price + Basis Moving AverageWhere:
- Basis MA = Moving Average of (Contract Mid Price - Spot Index Price)
- Smooths short-term volatility for stability
Index vs. Order Prices
- Index Price: Volume-weighted average across major exchanges
- Order Price: Actual execution price on the order book
Emerging Crypto Sectors
IoT Blockchain Solutions (MXC Protocol)
MXC Foundation pioneers decentralized LPWAN protocols addressing:
- IoT spectrum conflicts via super nodes
- Downlink resource allocation with smart bidding
- Cross-chain data markets through Polkadot's DataHighway
👉 Explore IoT crypto integrations
Meme Coins (Dogecoin)
Initially created as satire, DOGE evolved into a functional cryptocurrency with:
- Active tipping culture
- Strong community adoption
- Litecoin-derived security model
Advanced Trading Instruments
Options Contracts
OKX offers BTC/ETH options with two trading modes:
| Feature | Simplified Trading | Pro Trading |
|---|---|---|
| Strategy Complexity | Basic | Advanced |
| Order Types | Limited | Comprehensive |
| Risk Management | Streamlined | Granular |
Grayscale Trust Assets
Curated selection of 11 institutionally-backed coins including:
- Bitcoin (BTC)
- Ethereum (ETH)
- Litecoin (LTC)
FAQ: Unrealized P&L Explained
Q: How often does unrealized P&L update?
A: Continuously in real-time based on mark price movements.
Q: Why use mark price instead of last traded price?
A: Prevents manipulation and reduces unnecessary liquidations during volatility.
Q: Can unrealized P&L affect my account balance?
A: Only when positions are closed (converts to realized P&L).
Q: How is options P&L calculated differently?
A: Incorporates time decay (theta) and implied volatility changes.
Q: Where can I view my unrealized P&L?
A: In the "Positions" tab of your trading dashboard.