Bitmex - Unrealised vs. Realised Profits

[E_001]

Hello Friends,

its a very basic question, but I still can not understand how exactly it works, so I like to ask for your help

For example, I am on a long possition at Bitmex and my unrealised profits are 0,0086 XBT (16.12%) and my realised Profits are -0,0004 XBT. Why are my realised profits still red and in negative balance??? When I execute the possition I gained 16,12% which are 0,0086XBT so this should be enough to pay the fees. But why are my realised profits still in negative balance??

In other words, how can I see at what time i gained a profit?? Can I calculate the unrealised profits minus the realised profits (0,0086 XBT - 0,0004 XBT)

There must be a way to easily recognise the profit or loss..


Thank you very much for your help!!  

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[Bitcoin_Arena]

Is it your first trade?

If not, have you made losses while trading in the same account before?
Sometimes if you have made bigger losses before, you can still remain in negative even if you make a positive released profit

Please check: https://www.bitmex.com/app/wallet and scroll below and see your profit making history. If you find it challenging, you can screenshot the page, post it here and i can help you interpret it.

[CodyAlfaridzi]

But why are my realised profits still in negative balance??

Because you haven't close (selling your long) the position. Once you close your position, your unrealized profit will become realized profit. The funding fee is realized every 8 hours in Bitmex.

[E_001]

Is it your first trade?

If not, have you made losses while trading in the same account before?

It is not my first trade and I made losses on trades before, but this should not effect my current position i think 

I closed the possition now (but I missed to make a screenshot) and even when my realised profits where negative I made some profits because my unrealised profits was higher then my realised profits. It is still confusing because I dont now how to calculate it correctly.

Can I calculate my unrealised profits minus my realised profits to see how much the profit will be? How do you calculate it?

And why the realised profits turn in positive profits sometimes?

I read about it on Bitmex but its still confusing, I thing there should be a easy understandable way to figure that out 


Thank you for your answers!

[squatz1]

Is it your first trade?

If not, have you made losses while trading in the same account before?

It is not my first trade and I made losses on trades before, but this should not effect my current position i think 

I closed the possition now (but I missed to make a screenshot) and even when my realised profits where negative I made some profits because my unrealised profits was higher then my realised profits. It is still confusing because I dont now how to calculate it correctly.

Can I calculate my unrealised profits minus my realised profits to see how much the profit will be? How do you calculate it?

And why the realised profits turn in positive profits sometimes?

I read about it on Bitmex but its still confusing, I thing there should be a easy understandable way to figure that out 


Thank you for your answers!

The site is trying to tell you that prior to this, you've lost money on trades. The amount you've lost on all prior trades is -0.0004 BTC. The amount that you've made on this one particular trade is .0086 BTC, and you haven't realized this profit yet. The way to realize this profit will be to close out your trade.

Once that happens, your realized profit will change to .0086-.0004 = Realized Profits.

I'd recommend not using BitMex too often, doesn't usually end well.

[AdolfinWolf]

Is it your first trade?

If not, have you made losses while trading in the same account before?

It is not my first trade and I made losses on trades before, but this should not effect my current position i think  

I closed the possition now (but I missed to make a screenshot) and even when my realised profits where negative I made some profits because my unrealised profits was higher then my realised profits. It is still confusing because I dont now how to calculate it correctly.

Can I calculate my unrealised profits minus my realised profits to see how much the profit will be? How do you calculate it?

Well, yeah. The unrealized profits v realized profits really is equal to the following: (That is; if you're trading with all your account balance.)

The balance of your current position vs the balance of your original starting position.
Otherwise:

Realized : the money you made, or lost from positions already closed.
Unrealized : the money you made, or lost from positions that are still open, and subject to change.

Can I calculate my unrealised profits minus my realised profits to see how much the profit will be? How do you calculate it?

Current account balance - Original Account balance  = unrealized profits (or losses).

And why the realised profits turn in positive profits sometimes?

I read about it on Bitmex but its still confusing, I thing there should be a easy understandable way to figure that out  


Thank you for your answers!

I'm not sure. Are you trading future contracts, such as XBTH20 (Those which expire...),  or are you trading perpetual contracts, (those which don't expire?)
If it's the latter, and you're trading perpetual contracts, you will have to pay a daily fee (depending on whether the market is in disbalance or balance towards your position of course; meaning that if there are more shorts than longs, only the shorts pay fee. (Although this is not exactly true, just a simplified version.))

You can read more about how that fee is determined  ( and adjusted every 8 hours. ).
In bull markets, that fee can become quite a lot real fast. that is - ofcourse - if you are long on your position. - if short, you will receive the fee.

https://www.bitmex.com/app/perpetualContractsGuide#Funding

The unrealized PNL (Profit and Loss) is based on the difference between the average entry price and the mark price.

The realized PNL is based on the difference between the average entry price and the Exit Price.

So, for each individual trade you can calculate your profits from realized trades or unrealized trades by calculating the entry point of your position, minus the exit, times the size of your position.

Which would be :

Buying:

    Unrealized PNL  = Contracts * Multiplier * (1 / Entry Price - 1 / Mark price)
    Realized PNL  = Contracts * Multiplier * (1 / Entry Price - 1 / Exit Price)

   Position: Long
    Entry price (average): 10,000 USD / BTC
    Contracts: 10,000
    Multiplier: 1 contract = 1 USD

    When the mark price rises to 11,000 USD
        Unrealized PNL = Contracts * Multiplier * (1 / Entry Price - 1 / Mark price)
        Unrealized PNL = 10,000 * (1 / 10,000 - 1 / 11,000) ≈ 0.0909 BTC
    When the user successfully closed long position at 12,000 USD
        Realized PNL  = Contracts * Multiplier * (1 / Entry Price - 1 / Exit Price)
        Realized PNL = 10,000 * (1 / 10,000 - 1 / 12,000) ≈ 0.1667 BTC

[Simela]

Is it your first trade?

Trade on Bitmex?

It's a bet.

[DarkStar_]

And why the realised profits turn in positive profits sometimes?

If you're leveraged and on the right side, the funding rate will be negative so you'll get some BTC that becomes realized profits. Bitmex also has negative maker fees.

[petuel]

Is it your first trade?

Trade on Bitmex?
It's a bet.

Bitmex is claimed as crypto exchange and derivative trading platform.
So yeah, basically a bet service haha

[Vispilio]

Good points on interest rate swaps affecting your p/l on open positions.

Another reason for your scenario: assume you bought 0.1 BTC at 9000, then added to your position at 7000 and closed half at 7500, and now you still have the open position going while market recovers back to 9000.

Your unrealized profits will be deep in green (profits acquired by the open position), but the realized profits would still show a red because you average entry is effectively 8000, and you closed part at of it 7500...

If / when you eventually close the existing position above 9000, your full realized overall profits will be positive + or - what you made or paid  on interest rate swaps and trading fees...

[Ukuhudu]

You made losses , this trades you post makes profit realised and go home