What Is NLP on Binance? What does NLP mean in tracking and improving transaction efficiency? It’s a question asked by many newbies to Binance. The following article learns about NLP on Binance to effectively leverage this information in capital management.
Table of Contents:
What Is NLP on Binance?
NLP on Binance stands for Profit and Loss, which means profit and loss. PnL on Binance is intended as a profit and loss analysis report on your Binance accounts, such as real-time profit and loss, including holding activities and open trades.
NLP will change according to market fluctuations for open trades or holding assets. PnL numbers are only officially confirmed and do not fluctuate with completed or exhausted transactions in wallets on Binance.
What is the formula for calculating NLP on Binance?
NLP on Fiat and Spot accounts:
Yesterday’s NLP = Total assets in the spot account Yesterday (at 24:00:00 UTC) – Today’s initial total assets (at 00:00:00 UTC) – Transfer and deposit yesterday’s net money.
The data refresh time will be in the UTC+0 time zone. Maintenance time is from 0 to 2 am (UTC + 0) every day. During this time, yesterday’s NLP will not be displayed.
NLP on the future account:
Transaction costs (e.g. fees, financing and settlement fees) are excluded from the calculation of GNP. P&L analysis at the account level includes the transaction and payment P&L and the unrecorded P&L exchange rate from holdings, all of which are valued on a USD basis.
With USDT margin futures, PNL is calculated with the formula:
- Long = (Exit Price – Entry Price) * Quantity
- Short = (Entry Price – Exit Price) * Quantity
Margin contract in currency, NLP calculated with the formula:
- NLP = Trading Direction * Quantity * Contract Multiplier * (1/Entry Price – 1/Exit Price)
- Trading direction: long is 1, short is -1
GNP on the margin account:
Profits and losses are calculated by taking the BTC and USD value of the margin account at the beginning of the period compared to the end of the period, excluding changes due to transfers. The fiat value of GNP is not just PnL in BTC after calculating the conversion rate of the fiat currency. These data are for reference only.
How to Use NLP Calculator on Binance Future
Binance Future provides an automatic calculator that allows traders to calculate their expected profits and losses (PnL) before placing any Future order. This calculator can help you calculate: NLP, Target Price, Liquidation Price, Maximum Open or Open Price. Do the following:
1. On the Future order page, click the [Calculator] icon in the order window:
2. Choose Start Margin, NLP and ROE:
3. Select [Long] if the market is likely to rise or [Short] if the market is likely to decrease. Then, enter the entry price, exit price, quantity, and leverage level (drag the slider to choose the leverage level).
4. Click [Calculate] you will see the result of Initial Margin, NLP and ROE on the right side of the screen.
Above is some information about NLP about Binance and how to calculate NLP. Knowing how to calculate NLP can help you predict your profit to optimize the efficiency of your Binance investments.
