For a SHORT position:

$\text{Realized P\&L} = \text{Closed Quantity} \times (\text{Average Entry Price} – \text{Closing Price})$

Realized P&L=Closed Quantity×(Average Entry Price−Closing Price) Where:

• Closed Quantity: Amount of contracts or units closed.
• Average Entry Price: Average price at which the position was entered.
• Closing Price: Price at which the position is closed.

Example:

Assuming a Trader enters into a long position of 0.1 BTCUSDT perpetual swap contracts at an average entry price of 30,000 USDT:

1. If the position closes at 36,000 USDT:
   $\text{Realized P\&L} = 0.1 \text{ BTC} \times (36,000 – 30,000) \text{ USDT} = 600 \text{ USDT}$ 

   $\text{Realized P\&L}=0.1\text{ BTC}\times (36,000-30,000)\text{ USDT}=600\text{ USDT}$

2. If the position closes at 24,000 USDT:
   $\text{Realized P\&L} = 0.1 \text{ BTC} \times (24,000 – 30,000) \text{ USDT} = -600 \text{ USDT}$ 

   $\text{Realized P\&L}=0.1\text{ BTC}\times (24,000-30,000)\text{ USDT}=-600\text{ USDT}$