search

How is the Position Value of Perpetual Futures Calculated?

In perpetual futures trading, position value is one of the key data points used to calculate margin usage, liquidation prices, and available position size. It directly impacts your risk management and trading decisions.

hashtag
I. What is Position Value?

Position value refers to the total value of your current contract position, calculated based on the Mark Price. The Mark Price is not the latest transaction price, but a reference price designed to reduce the impact of short-term market volatility on positions and liquidation judgments.

hashtag
II. Formula for Position Value

Position Value = Position Size × Mark Price

hashtag
III. Are the Calculations Different for Long and Short Positions?

Whether you hold a Long (Bullish) or Short (Bearish) position, the calculation method for position value is the same—both follow the formula above.

hashtag
IV. Calculation Example

Assume:

  • Position Size: 0.5 BTC

  • Current Mark Price: 60,000 USDT

Then: Position Value = 0.5 × 60,000 = 30,000 USDT

This 30,000 USDT is the position value of the contract at the current Mark Price.

hashtag
V. NewCoin Reminder

  • Position value fluctuates in real time with the Mark Price.

  • Position value is not equivalent to actual profit or loss.

  • Parameters such as margin and liquidation price are calculated based on position value.

  • It is recommended that you fully understand the logic of position value calculation before trading and reasonably control your position size and risk.

PreviousOverview of Perpetual FuturesNextGlossary of Futures Trading Terms

Last updated