Floating profit and loss, also known as position profit and loss, refers to the potential profit and loss calculated according to the initial transaction price of the position contract and the settlement price of the day.

Introduction:

Floating profit and loss is the difference between the position value of the contract held by the trader at the end of the transaction and the original position value.

Floating gains and losses are unrealized gains and losses, which are usually not recognized as investment income according to the realization principle of accounting attention to income.

However, due to the high risk of futures investment, in order to provide decision-making information to users of financial statements, it needs to be disclosed to distinguish it from the realized gains and losses of futures investment.

Extended data:

Classification and calculation

Classification of floating gains and losses: floating gains and losses can be divided into current floating gains and losses and accumulated floating gains and losses.

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

Cumulative floating profit and loss: refers to the cumulative profit and loss of futures contracts from the opening of positions to the settlement date; The floating profit and loss of the day refers to the profit and loss generated on a trading day during the holding period.

The calculation formula is as follows:

Floating profit and loss of the day = (settlement price of the day-settlement price of the previous trading day) × position.

The floating profit and loss on the opening day is calculated according to the difference between the settlement price and the opening price on that day.

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

Or = (settlement price of the day-purchase transaction price) × purchase amount

The result of the above calculation is that positive numbers are floating profits and negative numbers are floating losses.

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