When multiple entries are made into the same position, the average opening price is recalculated using a BTC-denominated formula:
Average Opening Price=Total BTC ValueTotal Contracts
Example
Position 1: 1,000 contracts @ 5,000 USD
Position 2: 2,000 contracts @ 6,000 USD
Total Contracts=1,000+2,000=3,000
Total BTC Value=(5,0001,000)+(6,0002,000)=0.2+0.333333=0.533333BTC
Average Opening Price=0.5333333,000=5,625.00USD
3. Profit and Loss Calculation
PnL is calculated based on the difference between inverse prices, since these are reverse (coin-margined) contracts. Profits and losses are settled in the base currency (e.g., BTC), not in USD.
3.1 For Long Positions
Unrealized PnL=Quantity×(Average Open Price1−Mark Price1)
Example:
1,000 contracts long
Average Price: 5,000
Mark Price: 5,500
=1,000×(5,0001−5,5001)=0.01819BTC
3.2 For Short Positions
Unrealized PnL=Quantity×(Mark Price1−Average Open Price1)
Example:
1,000 contracts short
Average Price: 5,000
Mark Price: 4,500
=1,000×(4,5001−5,0001)=0.02223BTC
Important Notes
Reverse contracts (coin-margined) are settled in the base currency (e.g., BTC).
USD values are used only for quotation purposes, not for settlement.
This structure ensures that traders earn and lose in the underlying asset they’re trading.