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AllXBTUSD43267.0+2.31%XBTEUR36977.5+2.18%XBTZ2143831.0+2.36%XBTH2244780.0+2.32%XBTV2143372.0+2.47%XBTEURZ2137494.0+2.40%AAVEUSDT295.91+8.32%ADAUSDT2.27951-4.51%ADAZ210.00005225-5.86%AXSUSDT63.850-2.42%ALTMEXUSD149.35+0.34%DEFIMEXUSD183.93+4.58%BCHUSD515.70+1.35%BCHZ210.011719-0.42%BNBUSDT347.42+0.02%DOGEUSDT0.20684+0.24%DOTUSDT29.4510-2.12%EOSUSDT4.0185+0.97%EOSZ210.00009299-0.57%ETHUSD3026.30+5.56%ETHUSDZ213747.50+5.93%ETHZ210.07000+2.93%FILUSDT55.78-8.18%LINKUSDT24.6900+9.53%LTCUSD151.87+1.06%LTCZ210.003449-1.68%LUNAUSD36.090-3.37%MATICUSDT1.1539+3.15%SOLUSDT136.294-0.86%SUSHIUSDT11.020+18.08%UNIUSDT23.466+22.26%SRMUSDT7.967+6.58%TRXUSDT0.08884-1.78%TRXZ210.0000020300-4.25%XRPUSD0.9466+1.60%XRPZ210.00002166-0.37%VETUSDT0.09195+1.48%XLMUSDT0.27757+1.06%.BXBT43288.09+2.28%.BETH3023.19+5.50%.BVOL24H3.94+2.87%Funding: 04:47:04 @ -0.0053%Time: 3:12:55 PM UTC
UPs 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.