What is floating profit and loss? What does floating profit and loss mean? Floating profit and loss, also known as position profit and loss, refers to the potential profit and loss calculated based on the initial transaction price of the position contract and the settlement price of the day. The formula is: floating profit and loss = (settlement price of the day - opening price) * position * contract unit.

The unrealized profit or loss of open positions is calculated based on the settlement price of the day.

That is, theoretically, money that has not yet fallen into your pocket.

Floating profit and loss = (settlement price of the day - opening price) * position * contract unit

In layman's terms: book profit and loss, floating profit and loss, are the positions held by traders when the transaction closes. The price difference between the position value of a contract and the original position value calculated based on the settlement price on that day.

Floating gains and losses are unrealized gains and losses. According to the accounting principle of focusing on income realization, they are usually not recognized as investment income. However, due to the relatively high risks of futures investment, in order to provide users of financial statements with decision-related information, it is necessary to disclose this to distinguish it from the realized gains and losses of futures investment and closing positions.

Classification and calculation

Classification of floating profit and loss: Floating profit and loss is divided into current day floating profit and loss and accumulated floating profit and loss.

Under the daily debt-free settlement system, the exchange uses the concept of floating profit and loss on the day.

Cumulative floating profit and loss: refers to the accumulated profit and loss generated by the futures contract from the opening of the position to the settlement date;

The floating profit and loss of the day refers to the profit and loss generated on a certain trading day during the position period.

The calculation formula is as follows

The floating profit and loss of the day = (the settlement price of the day - the settlement price of the previous trading day) × the position amount

The floating profit and loss on the day of opening the position should be Calculated based on the difference between the settlement price of the day and the opening price of the day.

Cumulative floating profit and loss = (selling price - settlement price of the day) × selling volume

or = (settlement price of the day - buying volume) × buying volume

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For the calculation result of the above formula, the positive number is floating profit and the negative number is floating loss.