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AllXBTUSD32768.0-2.13%XBTEUR27500.0-2.41%XBTU2132988.0-1.96%XBTM2132663.5-2.24%XBTZ2133225.0-2.66%XBTEURU2127764.5-1.73%ADAUSDT1.29150-1.71%ADAM210.00003936+1.39%ADAU210.00003906+1.06%BCHUSD488.90-5.49%BCHM210.01478-4.03%BCHU210.014796-5.28%BNBUSDT305.02-1.73%DOGEUSDT0.23313-9.41%DOTUSDT17.5900-7.59%EOSUSDT3.8880-5.42%EOSM210.0001172-4.25%EOSU210.00011502-5.17%ETHUSD1982.70-3.54%ETHUSDM211978.50-4.11%ETHUSDU212571.30-3.24%ETHM210.06026-1.52%ETHU210.06014-2.45%FILUSDT52.99-12.08%LINKUSDT18.7200-2.37%LINKUSDTM2118.8070-3.15%LTCUSD134.52-7.02%LTCM210.004065-5.79%LTCU210.004040-6.09%SOLUSDT30.535-3.46%UNIUSDT17.371-7.01%TRXUSDT0.05963-6.27%TRXM210.00000180-4.26%TRXU210.0000017700-4.30%XRPUSD0.6800-2.93%XRPU210.00002020-1.70%XRPM210.00002047-1.35%XLMUSDT0.25972-4.85%.BXBT32784.43-2.14%.BETH1981.60-3.56%.BVOL24H7.47+72.12%Funding: 07:29:42 @ -0.0566%Time: 12:30:17 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.