Before we go into details on Copy Trading P&L calculation, we must first understand the mechanism of USDT Perpetual Trading. When a few orders are in the same symbols with the same direction, the orders will be merged into one position, even when they open at different timings. Hence, the system will calculate the average entry price (AEP) based on the entry price of all orders for the position and also the liquidation price.
In Copy Trading, the average entry price, liquidation price, and all other details can be viewed from the Copy Trading User Center. When a user closes a position or even partially closes the position (only exiting a certain order), the system will always use the AEP rather than the order entry price to calculate the user's final equity and available balance.
For example, suppose a user opens two long orders in BTCUSDT with the same quantity, with an entry price of 50,000 USDT and 60,000 USDT, respectively. The system will amalgamate these two orders into one position and calculate a new AEP of 55,000 USDT [(50,000 + 60,000) / 2]. When the user closes the position, the system will use the AEP of 55,000 USDT to determine the user's profit or losses, final equity, and available balance, rather than the individual order entry prices of 50,000 USDT and 60,000 USDT.
Below is an illustration of how to determine your Copy Trading transactions, P&L, and equity.
Beginning of a Trade |
Follower A copied Master Trader B with a 1,000 USDT investment. A while later, he successfully copied a trade with this Master Trader. A 0.034 BTCUSDT long position is opened, with an order entry price of 28,188.80 USDT.
At this point in time, the only realized P&L is the fee to open this position. To check the current realized P&L, Follower A can refer to the Fees to Open stated on the open position details or go to the Copy Trading transaction history to view the details.
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Funding Fee Settlement |
At UTC 16:00, the position is not closed and the funding fee will be incurred. From the screenshot below, we can determine the funding rate is negative, and therefore Follower A received the funding fee for his long position. 3.55676925 USDT has been added to his available balance for this Master Trader.
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Increase Position Size |
Master Trader B then placed another two orders and Follower A has copied successfully with a quantity of 0.031 BTC and 0.028 BTC, with order entry prices of 28,618.90 USDT and 28,600.10 USDT, respectively.
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Partial Closure of the Position |
Master Trader B has partially closed the position, and so has the position of Follower A. Follower A can see a total of –40.23126108 USDT has been deducted from his wallet balance, which includes the position loss of -39.67456344 USDT for that 0.034 quantity of BTCUSDT long order and also a trading fee of 0.55669764 USDT to close that order.
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Check the Closing History |
From the Historical Realized P&L page, we can see the order is closed via copied trade with a closed P&L of -39.1548 USDT.
Position P&L = -39.67456344 USDT Fee to Open = 0.55669764 USDT Fee to Close = 0.57505152 USDT Funding Fee = (-1.22641846 - 3.55676925 + 0.26588617)/0.093 X 0.034 = -1.65148658 USDT Closed P&L = -39.67456344 - 0.55669764 - 0.57505152 - (-1.65148658) = - 39.1548 USDT
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Closure of the Entire Position |
The entire position is now closed. Follower A can go to the History Orders page from his User Center (Follower) to view the closed P&L.
ROI = [total equity - (total investment + investment reduced during the copy period)]/(total investment) ROI = [968.68 - (1200 - 200)]/1200 = -2.61%
Please note that the Total Invested amount will not decrease when you reduce your investment from the Master Trader, but the figure will be accumulated when you increase your investment. This is the reason why you may notice the equity plus your P&L has much difference with your Total Invested amount. |
— Currently, followers will be able to follow more than one Master Trader. Hence, please ensure you refer to the correct Master Trader records.
— As a follower, you will see the Est. Deduction is the profit share being pre-deducted from your earned profit. On the profit share settlement date, if there’s a net loss in the total P&L, the pre-deducted profit share will be sent to your Funding Account as a Refund on the settlement day. For more information, please refer to Copy Trading: Profit Sharing Explained.
— As a Master Trader, you can see your Profit Share record from the Derivatives Account History or Unified Trading Account Transaction Log (for Master Trader upgraded to UTA).
— Other common inquiries regarding Copy Trading can be found here.