Frequently Asked Questions
How is futures P&L calculated?
Long P&L = (Exit - Entry) x Qty. Short P&L = (Entry - Exit) x Qty. Net P&L subtracts trading fees and funding payments. ROE = Net P&L / Margin x 100%.
What is funding rate?
A periodic payment between longs and shorts to keep perpetual price near spot. Positive rate = longs pay shorts. Settles every 8h. Typical range: -0.1% to +0.1%.
What's the difference between ROE and ROI?
ROE measures return on your margin. ROI on total position. With 10x leverage, 5% ROI = 50% ROE. Exchanges show ROE since it's your actual capital return.
Maker vs taker fees?
Maker = limit orders (add liquidity, lower fees ~0.02%). Taker = market orders (remove liquidity, higher fees ~0.04-0.06%). Use limit orders to save on fees.
How does funding impact profitability?
At 0.01% per 8h, that's ~11%/year on position size. Leveraged longs during bullish sentiment pay this continuously. For swing trades held days/weeks, funding can eat significant profit.