PNL and Leverage Trading on FYBIT

PNL means Profit and Loss. It shows how much you gained or lost on a trade. On FYBIT you can trade with leverage in isolated mode. You choose the amount you allocate to a position, and leverage increases the position size. You can trade both directions. UP positions aim to profit from price increases. DOWN positions aim to profit from price decreases.

Core terms

Allocated amount
The amount you allocate to a single position. This is the maximum you can lose on that position in isolated mode.

Leverage
A multiplier that increases the position size relative to your allocated amount.

Position size
The total notional value of the position. This is what makes PNL move faster when price changes.

Liquidation price
Also called Loss Cut price. If price reaches it, the position is closed automatically.

How leverage affects PNL

Leverage amplifies results because it increases position size.

Rule of thumb
Approximate PNL percent on your allocated amount equals price move percent multiplied by leverage, before fees.
Want exact numbers for your trade? Use the PnL Calculator

Example
A 1 percent move with 10x leverage is about a 10 percent change on the amount you allocated.

How to trade on FYBIT

1. Choose the asset.
2. Choose funding currency, BTC, ETH, or USDT.
3. Choose order type. Market executes instantly. Limit triggers at your price.
4. Enter trade amount and set leverage.
5. Optional. Set Stop Loss, enable Auto Sell at 100 percent, 200 percent, or 300 percent profit.
6. Place the order. Buy UP for rising prices. Buy DOWN for falling prices.
7. Close with a Sell order. Full closure only.

What to watch

- Higher leverage brings liquidation closer.
- Fees scale with position size.
- If you add another same direction order, your average entry price, average leverage, and liquidation price change.

Conclusion

PNL is driven by position size. Leverage increases position size, so it increases both profit potential and risk. Use Stop Loss and monitor liquidation price, especially if you add to a position.

Examples. How PNL changes with leverage

Scenario 1. Low leverage, small move
Allocated amount 500 USDT
Leverage 3x
Position size 1500 USDT
Price move up 2 percent
Approx PNL 30 USDT profit
That is about 6 percent on your allocated amount

Scenario 2. Medium leverage, typical move
Allocated amount 200 USDT
Leverage 10x
Position size 2000 USDT
Price move down 1.5 percent on a DOWN position
Approx PNL 30 USDT profit
That is about 15 percent on your allocated amount

Scenario 3. High leverage, fast risk
Allocated amount 100 USDT
Leverage 50x
Position size 5000 USDT
Price move against you by 1 percent
Approx PNL 50 USDT loss
That is about minus 50 percent on your allocated amount
A slightly larger adverse move can push the position toward liquidation, depending on the asset and fees

You can calculate your own scenario using the PnL Calculator

Note
These examples show simplified math to illustrate leverage. Fee is not included in these calculations.

If you are unsure about any term used above, check the full Glossary