BullHow to Read a Futures Position: Entry, Mark Price, Margin and More
BullCalc Team · · 2 min read
The first time you open a futures position, the exchange shows a row of numbers that can be confusing. Knowing what each one means helps you avoid surprises, especially near liquidation.
Size
The full value or quantity of the position. It may be shown in coins (0.05 BTC) or in USDT (3,000 USDT). Fees and funding are calculated on this number, not on your margin.
Entry price
The average price at which the position was opened. If you added to the position, this is the weighted average of all your fills. The DCA calculator shows how it changes when you add.
Mark price
A fair price calculated by the exchange from several spot markets. Unrealised PnL and liquidation use the mark price, not the last traded price. This protects traders from being liquidated by a single strange trade on one exchange.
Margin
The amount of your money locked to hold the position. In isolated mode it is fixed unless you add more. Margin equals position size divided by leverage.
Margin ratio
How close the position is to liquidation, shown as a percentage. When it reaches 100%, the position is liquidated. If you see it climbing, you can add margin, reduce the position or close it.
Liquidation price
The mark price at which the position will be closed by the exchange. For an isolated long it sits below your entry, for a short it sits above. Higher leverage moves it closer.
Unrealised PnL and ROE
Unrealised PnL is the profit or loss if you closed now at the mark price. ROE is that PnL as a percentage of your margin. Neither includes the fee you will pay to close.
Putting it together
A good habit before every trade is to check three numbers: the PnL at your target, the target price for the ROE you want, and the liquidation price. The futures calculator has all three in one place, with tabs for PnL, target price and liquidation.
Common surprises
- PnL looks different from my math. The exchange uses the mark price, which can differ slightly from the last price.
- My balance dropped while the position was flat. You probably paid funding.
- Liquidation moved. Adding to a position or changing leverage changes the liquidation price.
Binance Futures Calculator (USDT-M)
Three futures tools in one place, laid out like the calculator on the exchange: PnL, target price and liquidation price.
Open the calculatorThis article is for education only and is not financial advice.