How to use Short Position PnL
Enter short entry, exit, and size. Read profit or loss when price falls or rises against the short.
Example: shorting 10 coins from $100 to $85
You short 10 coins at $100 and close at $85, paying a 0.1% fee on each side.
- Gross profit = ($100 − $85) × 10 = $150
- Fees = ($1,000 + $850) × 0.1% = $1.85
- Net profit = $150 − $1.85 = $148.15
Net profit is $148.15, a 14.82% return on the $1,000 position. If price had risen to $115 instead, the same short would lose $150 before fees.
Formula & methodology
PnL ≈ (entry − exit) × size after any fee fields you include.
Model short position profit and loss
Shorts gain when price drops and lose when price rises. CryptonicTools applies the classic (entry − exit) × size relationship so you can sanity-check a hypothetical cover.
Funding, borrow interest, and liquidations are venue-specific — add them with funding P&L or fee fields when your product charges them. Mark price can differ from last trade.
Informational math only; not a brokerage ticket and not advice to short any asset. Spot versus perpetual shorts also differ when funding applies.
What shorts omit on a napkin
Forced liquidations, insurance funds, and borrow recalls do not appear in a simple PnL line. Read your venue’s margin docs before sizing a short.
Combine with liquidation and position-size calculators when leverage is involved so the short is constrained by risk limits, not hope.
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