AllXBTUSD8522.5+0.54%XBTZ198603.0+0.66%XBTH208737.5+0.64%XBT7D_U1050.00168-16.42%XBT7D_D950.00180-36.84%ADAZ190.00000521+1.96%BCHZ190.03126+0.51%EOSZ190.0003979+1.22%ETHUSD184.20+1.10%ETHZ190.02160+0.61%LTCZ190.006920+1.39%TRXZ190.00000217+0.00%XRPZ190.00003078+0.23%.BXBT8515.41+0.49%.BETH183.96+1.13%.BVOL24H1.62-13.83%Funding: 05:24:39 @ 0.0100%Time: 2:35:20 PM
Upside Profit Contract Worked Example

Can you provide worked examples of hypothetical P&L under different scenarios?

The graph below shows the hypothetical² price for a BitMEX Bitcoin UP contract XBT7D_U110 (right axis) as the .BXBT30M index changes (left axis). We have provided prices for each day (12:00 UTC) throughout the seven-day life of the product.

Chart

Listing date and time is Friday, 1 December 2017 at 12:00 UTC.

.BXBT30M = USD 9,945.52

Expiry date and time is Friday, 8 December 2017 at 12:00 UTC.

.BXBT30M = USD 14,655.44

In this example we consider the contract XBT7D_U110. The strike is calculated to be USD 11,000. This is the nearest USD 250 increment to 110% of USD 9,945.52.

P&L and Margin Scenario 1: Buy 100 contracts and hold to maturity

Assume you begin with 10 XBT in your account.

Fri 1 Dec 12:00 UTC (listing date and time): Buy 100 contracts at hypothetical² last price = 0.0065 XBT

  • Unrealised P&L = number of contracts * (last price - entry price) = 100 * (0.0065 - 0.0065) = 0 XBT
  • Realised P&L = 0 XBT
  • Position margin = 100 * 0.0065 = 0.65 XBT
  • Wallet balance = deposits - withdrawals + realised P&L = 10 XBT
  • Available balance = wallet balance + unrealised P&L - order margin - position margin = 10 + 0 - 0 - (100 * 0.0065) = 9.35 XBT
  • Margin balance = wallet balance + unrealised P&L = 10 + 0 = 10 XBT

Sat 2 Dec 12:00 UTC: hypothetical² last price = 0.0087 XBT

  • Unrealised P&L = 100 * (0.0087 - 0.0065) = 0.22 XBT
  • Realised P&L = 0 XBT
  • Position margin = 100 * 0.0087 = 0.87 XBT
  • Wallet balance = 10 XBT
  • Available balance = 10 + 0.22 - 0 - 0.87 = 9.35 XBT
  • Margin balance = 10 + 0.22 = 10.22 XBT

Calculations for all other dates until expiry (3, 4, 5, 6, and 7 Dec) follow the same methodology, just using different hypothetical² last prices.

Fri 8 Dec 12:00 UTC (expiry): Settlement price = 0.0249 XBT

  • Unrealised P&L = 0 XBT
  • Realised P&L = number of contracts * (settlement price - entry price) = 100 * (0.0249 - 0.0065) = 1.84 XBT
  • Position margin = 0 XBT
  • Wallet balance = 10 - 0 + 1.84 = 11.84 XBT
  • Available balance = 11.84 XBT
  • Margin balance = 11.84 XBT

P&L and Margin Scenario 2: Buy 100 contracts and sell before expiry

Assume you begin with 10 XBT in your account.

Sat 2 Dec 12:00 UTC: Buy 100 contracts at hypothetical² last price = 0.0087 XBT

  • Unrealised P&L = number of contracts * (last price - entry price) = 100 * (0.0087 - 0.0087) = 0 XBT
  • Realised P&L = 0 XBT
  • Position margin = 100 * 0.0087 = 0.87 XBT
  • Wallet balance = deposits - withdrawals + realised P&L = 10 XBT
  • Available balance = wallet balance + unrealised P&L - order margin - position margin = 10 + 0 - 0 - (100 * 0.0087) = 9.13 XBT
  • Margin balance = wallet balance + unrealised P&L = 10 + 0 = 10 XBT

Sun 3 Dec 12:00 UTC: Hypothetical² last price = 0.0121 XBT

  • Unrealised P&L = 100 * (0.0121 - 0.0087) = 0.34 XBT
  • Realised P&L = 0 XBT
  • Position margin = 100 * 0.0121 = 1.21 XBT
  • Wallet balance = 10 XBT
  • Available balance = 10 + 0.34 - 0 - 1.21 = 9.13 XBT
  • Margin balance = 10 + 0.34 = 10.34 XBT

Mon 4 Dec 12:00 UTC: Sell 100 contracts at hypothetical² last price = 0.0096 XBT

  • Unrealised P&L = 0 XBT
  • Realised P&L = number of contracts * (exit price - entry price) = 100 * (0.0096 - 0.0087) = 0.09 XBT
  • Position margin = 0 XBT
  • Wallet balance = 10 + 0.09 = 10.09 XBT
  • Available balance = 10.09 XBT
  • Margin balance = 10.09 XBT

² The hypothetical price is a theoretical value calculated using a Black-Scholes model and constant parameters (interest rate = 0, repo = 0, implied volatility = 190). It is only being used for illustrative purposes and is not a true reflection of the actual market price at which you can buy/sell.