What Is the Break-Even Price?
The break-even price is the price at which, if you place an order to close the remaining position, your total net profit will be exactly 0. The break-even price includes both trading fees and funding fees. The value shown by the system is a theoretical estimate based on the maker fee rate. Actual execution results may vary slightly due to slippage, your actual fee tier, market volatility, and other factors.
How Is the Break-Even Price Calculated?
Break-Even Price = (Average Entry Price - Profit Earned per Unit) ÷ (1 - Direction × Fee Rate)
Profit Earned per Unit = Realized PnL ÷ Position Size (in coin)
Realized PnL = Closing PnL + Funding Fees + Trading Fees
• Position Size (in coin): The total current position size is measured in the base asset. It is calculated as contract quantity × contract face value.
• Average Entry Price: The weighted average fill price of the orders used to open the current position.
• Closing PnL: (Average Closing Price - Average Entry Price) × Closed Contract Quantity × Contract Face Value × Position Direction.
• Funding Fees: The cumulative funding fees charged or received during the life of the position.
• Trading Fees: The cumulative trading fees incurred during the life of the position. Fees are treated as a negative value.
Break-Even Price Calculation Example
Assume you opened one position and partially closed one long position. The maker fee is 0.02%, and the funding fee is 10 USDT.
· You opened a BTCUSDT long position of 0.15 BTC when BTC was priced at 100,000 USDT.
· You later closed 0.05 BTC of that BTCUSDT long position when BTC was priced at 110,000 USDT.
Realized PnL = Closing PnL + Funding Fees + Trading Fees
= ((110,000 - 100,000) × 0.05 + 10 - (100,000 × 0.15 × 0.02% + 110,000 × 0.05 × 0.02%))
= 500 + 10 - 4.1
= 505.9
Break-Even Price = (Average Entry Price - Profit Earned per Unit) ÷ (1 - Direction × Fee Rate)
= (100,000 - (505.9 ÷ 0.1)) ÷ (1 - 1 × 0.02%)
= 94,920.5 ÷ 0.9998
= 94939.5
In other words, if you place a maker order at 94939.5 USDT and the remaining position is closed at that price, your total net profit will be zero, assuming there is no further funding fee impact. This confirms that 94939.5 USDT is the break-even price.
What Is the Break-Even Price?
The break-even price is the price at which, if you place an order to close the remaining position, your total net profit will be exactly 0. The break-even price includes both trading fees and funding fees. The value shown by the system is a theoretical estimate based on the maker fee rate. Actual execution results may vary slightly due to slippage, your actual fee tier, market volatility, and other factors.
How Is the Break-Even Price Calculated?
Break-Even Price = (Average Entry Price - Profit Earned per Unit) ÷ (1 - Direction × Fee Rate)
Profit Earned per Unit = Realized PnL ÷ Position Size (in coin)
Realized PnL = Closing PnL + Funding Fees + Trading Fees
• Position Size (in coin): The total current position size is measured in the base asset. It is calculated as contract quantity × contract face value.
• Average Entry Price: The weighted average fill price of the orders used to open the current position.
• Closing PnL: (Average Closing Price - Average Entry Price) × Closed Contract Quantity × Contract Face Value × Position Direction.
• Funding Fees: The cumulative funding fees charged or received during the life of the position.
• Trading Fees: The cumulative trading fees incurred during the life of the position. Fees are treated as a negative value.
Break-Even Price Calculation Example
Assume you opened one position and partially closed one long position. The maker fee is 0.02%, and the funding fee is 10 USDT.
· You opened a BTCUSDT long position of 0.15 BTC when BTC was priced at 100,000 USDT.
· You later closed 0.05 BTC of that BTCUSDT long position when BTC was priced at 110,000 USDT.
Realized PnL = Closing PnL + Funding Fees + Trading Fees
= ((110,000 - 100,000) × 0.05 + 10 - (100,000 × 0.15 × 0.02% + 110,000 × 0.05 × 0.02%))
= 500 + 10 - 4.1
= 505.9
Break-Even Price = (Average Entry Price - Profit Earned per Unit) ÷ (1 - Direction × Fee Rate)
= (100,000 - (505.9 ÷ 0.1)) ÷ (1 - 1 × 0.02%)
= 94,920.5 ÷ 0.9998
= 94939.5
In other words, if you place a maker order at 94939.5 USDT and the remaining position is closed at that price, your total net profit will be zero, assuming there is no further funding fee impact. This confirms that 94939.5 USDT is the break-even price.