The Derivative Trading report is the report that you will use if you have any activity from trading derivatives.
The term ‘derivative’ refers to a type of financial contract whose value is dependent on an underlying asset, group of assets, or benchmark. A derivative is set between two or more parties that can trade on an exchange or over-the-counter (OTC). An example of this would be FTX - PERP contracts.
Transactions like this will import into the app as Realised Loss, Realised Profit, and Margin fees, instead of the traditional buy/sell transactions.
At the top of the Derivative Trading Report, you will find the report summary, which will look similar to the above image. This is a high-level summary of the profit and loss that was made during the reporting period.
The Report Summary will be broken down into three areas as explained below:
The total profit earned from trading derivatives during the selected reporting period.
The total Losses from trading derivatives during the reporting period.
The total of all margin fees paid during the reporting period.
Total Net Profit
The total profit or loss from trading derivatives during the reporting period. (Note: this number can be positive or negative. Positive if you made a profit, Negative if you made a loss.)
Trading Profit + Trading Loss + Margin Fee = Total Net Profit
Below the summary page, you will get down to the raw data that makes up this report.
This part of the report is called the Trading PnL Events, and it will include all the data that makes up the report summary up the top. Each of these rows will describe an individual Profit or Loss taxable event that has occurred during the selected tax year.
The data for these transactions will then be broken down into five columns:
The currency that was responsible for the capital gain/loss.
The date & time that you received the profit or loss.
The type of transaction that caused the taxable event. This can be Realized Profit, Realized Loss or Loan Fee (Margin Fee)
The amount of the currency that was gained or lost.
The value of the gain or loss. Denominated in your local fiat currency.