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AllXBTUSDT27142.5+1.65%XBTUSD27161.0+1.73%XBTEUR25397.5+2.32%XBTM2327260.5+1.84%XBTUSDTM2327308.0+2.46%XBTU2327358.5+1.85%XBTZ2327829.0+3.07%XBTUSDTU2327361.5+0.00%ETHUSDT1902.15+2.14%ETHUSD1904.70+2.28%ETHUSD_ETH1909.00+2.51%ETHUSDM231929.90+2.66%ETHM230.06990+0.46%ETHUSDTM231862.95+0.00%BMEXUSDT0.421+4.73%BMEXUSD0.420+3.45%ADAUSDT0.3772+3.54%ADAUSD0.3773+3.54%ADAM230.00001371+0.37%1TAIDOGEUSDT260.3+0.12%1TAIDOGEUSD261.1+0.42%APEUSDT3.118+2.84%APTUSD9.083+6.66%ARBUSD1.240+8.87%ARBUSDT1.158+0.09%ARBUSDTM231.233+9.41%AVAXUSD14.477+2.32%AVAXUSDT14.485+4.25%AXSUSD7.15+2.44%BCHUSDT114.75+1.37%BCHUSD114.55+1.06%BLURUSDT0.4864+29.16%BLURUSD0.5000+7.37%BNBUSDT307.00+0.99%BNBUSD307.06+0.69%BOBUSD0.0000240+20.00%CROUSD0.05934+1.49%DOGEUSDT0.07239+1.43%DOGEUSD0.07248+1.40%DOTUSD5.254+0.75%DOTUSDT5.215+1.14%EOSUSD0.9112+3.75%FLOKIUSDT0.00003160+0.60%FLOKIUSD0.00003200+3.23%FLRUSD0.0231+0.00%GMTUSDT0.2599+2.32%GMTUSD0.2579+0.08%GMXUSD55.72+4.42%GMXUSDT53.00+0.00%KLAYUSD0.18633+1.27%LINKUSD6.436+1.16%LTCUSDT94.76+0.70%LTCUSD94.85+0.69%LUNAUSDT0.8424+1.91%LUNAUSD0.8396+3.26%MATICUSDT0.8964+0.82%NEARUSD1.609+4.14%ORDIUSD8.300+0.00%PEPEUSDT0.000001289+3.20%PEPEUSD0.000001290+3.61%RNDRUSD2.581+3.24%SOLUSDT21.20+3.52%SOLUSD21.25+3.56%SUIUSDT0.930+1.42%SUIUSD0.932+1.75%TURBOUSD0.000200-0.99%USDTUSDC0.9912+0.00%XRPUSDT0.5210+1.92%XRPUSD0.5218+2.07%XRPM230.00001921+2.73%Funding: 03:06:21 @ 0.0100%Time: 12:53:38 AM UTC
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5
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.