Binance Futures PnL and ROE: Long, Short and Leverage Examples

PnL is the money gain or loss; ROE expresses it relative to margin. More leverage often increases absolute ROE, but for the same notional position and price move, it does not create extra dollar PnL.

These simplified formulas use linear USDT-settled contracts. Mark price, average entry, fees and funding affect the live display.

Long: PnL = quantity × (exit − entry)

Short: PnL = quantity × (entry − exit)

Long example

Long 0.02 BTC at 60,000 and exit at 63,000:

0.02 × (63,000 − 60,000) = 60 USDT

Notional is about 1,200 USDT. With roughly 120 initial margin at 10x, simplified ROE before costs is:

60 ÷ 120 × 100% = 50%

Notional remains 1,200, so price PnL remains 60. Margin usage, ROE and liquidation distance change.

Unrealized vs realized

Unrealized PnL changes while the position is open and commonly uses mark price. Realized PnL records closed quantity and booked costs. Net outcome should subtract entry fee, exit fee, funding and slippage.

If platform ROE differs from hand calculation, check mark vs last price, weighted entry after scaling, added/removed margin, partial closes, fee fields and cross-margin conventions.

Size risk before choosing leverage

For a 1,000 USDT account risking 1% (10 USDT) with a 2% stop:

Position notional = 10 ÷ 2% = 500 USDT

Determine 500 first, then use only enough leverage to meet margin needs. Do not start from the platform maximum. See Binance's position-size guide.

⚠️ A high ROE can simply mean very little margin was posted; it is not automatically better risk-adjusted performance.