Your P&L in Kite positions and gains on the funds page use different calculation methods:
- Kite positions: Calculates P&L based on your original entry price
- Funds page: Calculates gains based on the last Marked to Market (M2M) settlement price for open futures and short options positions
How Marked to Market affects calculations
The exchange uses Mark to Market (MTM) for accounting purposes and ledger adjustments in futures trading. At the end of each day, all open futures positions are marked to the closing settlement price. Your profits or losses are then credited or debited in your funds statement. This MTM process helps reduce counterparty risk and ensures prompt collection of losses while crediting profits.
Short options calculation
Short option positions do not go through the same MTM process as futures. Instead, the margin required increases as options move in the money, resulting in losses for short options. This ensures you contribute additional funds when facing losses, reducing default risk.
Your overall P&L will ultimately be the same on both platforms. However, daily P&L or credit/debit on the funds page may differ due to these distinct calculation methods.