What is Profit and Loss (P/L)?
Profit and Loss (P/L) refers to the calculation of profit and loss from buying and selling cryptocurrency in a specific period.
XSpring Digital uses weighted average to calculate the cost of each cryptocurrency and then calculates the P/L. The results are presented as percentages and values in Thai Baht that customers hold. This information can be used for further investment analysis and planning.
Example:
Trade 1:
Customer A invests 500,000 Thai Baht to buy BTC. The market price of BTC is 977,208 Baht, with a trading fee of 0.15%.
Quantity received by Customer A: 0.51089430 BTC, with a net amount of 499,998.88 Baht.
Calculation of Quantity: [(Placed amount / Market price) - (Fee x Placed amount / Market price)]
Quantity = (500,000 / 977,208) - (0.15% x (500,000 / 977,208)) = 0.51089430 BTC
Trade 2:
Customer A invests an additional 800,000 Baht to buy BTC.
The market price of BTC is 1,054,145.08 Baht, with a trading fee of 0.15%.
Quantity received by Customer A: 0.75777046 BTC, with a net amount of 799,998.20 Baht.
Total cost: 1,299,997.08 Baht (499,998.88 + 799,998.20)
Total quantity: 1.26866476 BTC (0.51089430 + 0.75777046)
Average unit cost: 1,024,697.08 Baht (total cost/quantity)
Trade 3:
Customer A sells 200,000 Baht worth of BTC.
The market price of BTC is 1,023,158.17 Baht, with a trading fee of 0.15%.
Quantity sold by Customer A: 0.19517999 BTC worth 199,700.00 Baht.
Remaining quantity: 1.07348477 BTC; total cost: 1,099,997.53 Baht.
Trade 4:
Customer A invests an additional 350,000 Baht to buy BTC.
The market price of BTC is 991,273.00 Baht, with a trading fee of 0.15%.
Quantity received by Customer A: 0.35255172 BTC, with a net amount of 349,999.21 Baht.
Summary of Customer A's investment portfolio:
Total cost: 1,449,996.74 Baht (1,099,997.52 + 349,999.21)
Total quantity: 1.42603649 BTC (1.07348477 + 0.35255172)
Average unit cost: 1,016,801.99 Baht (total cost/quantity)
If the market price of BTC is now 1,500,000 Baht and Customer A has not sold, the unrealized P/L (U. P/L) would be +689,058.00 Baht (+47.52% of total cost).
U. P/L = (Market price x Quantity) – Total cost)
= (1,500,000 x 1.42603649) – 1,449,996.74)
= 689,058.00 Thaibaht
%U. P/L = (U. P/L / Total cost) x 100
= (689,058.00 / 1,449,996.74) x 100
= 47.52%
If the market price of BTC is now 800,000 Baht and Customer A has not sold, the unrealized P/L (U. P/L) would be -309,167.54 Baht (-21.32% of total cost).
U. P/L = (Market price x Quantity) – Total cost)
= (800,000 x 1.42603649) – 1,449,996.74)
= (-309,167.54) Thaibaht
%U. P/L = (U. P/L / Total cost) x 100
= ((-309,167.54) / 1,449,996.74) x 100
= (-21.32%)
When Customer A sells, they realize the actual profit and loss (P/L) based on the calculations as provided in the example.