# 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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2. ### **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.