How Is Position Value Calculated in Perpetual Futures?

In perpetual futures trading, position value is one of the most important metrics. It is used to determine your required margin, liquidation price, and maximum position size.

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1. What Is Position Value?

   The position value represents the total value of your open position based on the current market price.

   Formula

   Position Value = Position Size × Mark Price The Mark Price is used instead of the last traded price to reduce the impact of market manipulation or extreme volatility.

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1. Same Calculation for Long and Short Positions

   The formula is identical whether the position is long or short.

   Example

   • Position Size: 0.5 BTC

   • Mark Price: 60,000 USDT

   Position Value = 0.5 × 60,000 = 30,000 USDT This value becomes the basis for calculating margin, liquidation thresholds, and trading limits.