Pair Trade Calculator for Crypto
A pair trade goes long one asset and short another, so you profit when the ratio between them moves, whichever way the market goes. Size the legs equal in dollars or by beta, then read the PnL for a ratio change, each leg’s liquidation price and the net funding.
The default is long ETH / short BTC, the ETH/BTC ratio trade. Prices load from Hyperliquid when the request succeeds and otherwise fall back to the example prices below. Both legs are assumed to sit on one venue with a shared cross-margin balance.
Last updated · How these numbers are calculated
Using example prices as of 2026-10-20.
Pair results
- Ratio A/B at entry
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- Leg A: long quantity / notional
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- Leg B: short quantity / notional
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- Margin A / margin B / total
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- Leg A isolated liquidation
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- Leg B isolated liquidation
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- Ratio move that wipes the account (B fixed)
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- Ratio and price of A at that point
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- Net funding per day (negative = you pay)
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- Net funding over the holding time
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- Round-trip fees, both legs
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- Scenario: ratio and exit prices
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- Gross PnL
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- Net PnL (after fees and funding)
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- Net return on total margin
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Worked example: long ETH / short BTC, $5,000 per leg
Rows move the ETH/BTC ratio, columns move BTC itself. With equal dollar legs the profit is N × x × (1 + y): a +5% ratio move is +$250 when BTC is flat and +$225 when BTC falls 10%, because the long leg is then smaller in dollars. A BTC move on its own cancels, which is the point of the hedge.
| ETH/BTC ratio change | BTC −20% (65,600) | BTC −10% (73,800) | BTC 0% (82,000) | BTC +10% (90,200) | BTC +20% (98,400) |
|---|---|---|---|---|---|
| −10% (ETH/BTC 0.02634) | −$400.00 | −$450.00 | −$500.00 | −$550.00 | −$600.00 |
| −5% (ETH/BTC 0.02780) | −$200.00 | −$225.00 | −$250.00 | −$275.00 | −$300.00 |
| −2% (ETH/BTC 0.02868) | −$80.00 | −$90.00 | −$100.00 | −$110.00 | −$120.00 |
| 0% (ETH/BTC 0.02927) | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| +2% (ETH/BTC 0.02985) | +$80.00 | +$90.00 | +$100.00 | +$110.00 | +$120.00 |
| +5% (ETH/BTC 0.03073) | +$200.00 | +$225.00 | +$250.00 | +$275.00 | +$300.00 |
| +10% (ETH/BTC 0.03220) | +$400.00 | +$450.00 | +$500.00 | +$550.00 | +$600.00 |
Assumptions: gross PnL before fees and funding, equal dollar legs, both on one venue with cross margin ($2,000 posted in total); a cell reads "Liquidated" when the loss reaches the account equity less combined maintenance margin (Hyperliquid tier rates, snapshot 2026-10-20); example as of 2026-10-20. Full formulas and data dates: methodology.
Liquidation of each leg, and the ratio move that wipes the account
Isolated liquidation prices treat each leg alone. On a shared cross-margin balance the two legs offset each other, so the number that matters for the pair is the ratio move, with BTC held fixed, that uses up the account down to maintenance margin.
| Leverage (each leg) | Margin posted | ETH long isolated liq (distance) | BTC short isolated liq (distance) | Combined maintenance | ETH/BTC move that wipes the account | Ratio at that point |
|---|---|---|---|---|---|---|
| 3x | $3,333 | 1,632.65 (32.0%) | 107,983.54 (31.7%) | $162.50 | −63.42% | 0.01071 |
| 5x | $2,000 | 1,959.18 (18.4%) | 97,185.19 (18.5%) | $162.50 | −36.75% | 0.01851 |
| 10x | $1,000 | 2,204.08 (8.2%) | 89,086.42 (8.6%) | $162.50 | −16.75% | 0.02437 |
| 20x | $500 | 2,326.53 (3.1%) | 85,037.04 (3.7%) | $162.50 | −6.75% | 0.02729 |
Assumptions: isolated rows use the Hyperliquid liquidation formula with tier iteration; the cross-margin column is an approximation: equity = margin posted + PnL, liquidation when equity reaches the sum of both legs' maintenance margin at entry notionals, BTC held fixed, fees and funding ignored; example as of 2026-10-20. Full formulas and data dates: methodology.
Net funding on a market-neutral pair
You pay funding on the long ETH leg and receive it on the short BTC leg when rates are positive, so the pair only costs or earns the difference. Equal rates on equal legs net to zero; a gap between the two markets is what you carry.
| ETH rate per hour | BTC rate per hour | ETH long, per day | BTC short, per day | Net per day | Net over 7 days |
|---|---|---|---|---|---|
| 0.00125% | 0.00125% | −$1.50 | +$1.50 | $0.00 | $0.00 |
| 0.0025% | 0.00125% | −$3.00 | +$1.50 | −$1.50 | −$10.50 |
| 0.00125% | 0.0025% | −$1.50 | +$3.00 | +$1.50 | +$10.50 |
| -0.001% | 0.00125% | +$1.20 | +$1.50 | +$2.70 | +$18.90 |
Assumptions: rates are examples (0.00125% per hour is 0.01% per 8 hours spread hourly), constant over the period and charged on entry notionals; real rates change every interval and each market has its own; example as of 2026-10-20. Full formulas and data dates: methodology.
Pair trading in crypto: how the legs are sized
In a dollar-neutral pair the long and the short have the same notional, NA = NB. A move of the whole market then adds to one leg what it takes from the other, and what is left is the change in the ratio. In a beta-hedged pair the short is scaled, NB = beta × NA, so that a 1% move in B is offset by the roughly beta% move it causes in A.
You can give the size of leg A or the total margin you want to commit. With a total margin M and leverage LA, LB, the calculator solves NA = M ÷ (1 ÷ LA + k ÷ LB) with k = NB ÷ NA, so margin A plus margin B equals M.
BTC ETH pair trade and the ETH/BTC ratio trade
The ETH/BTC ratio is ETH’s price divided by BTC’s. Long ETH / short BTC gains when the ratio rises, which means ETH outperforms BTC, even if both fall. If A’s price is multiplied by (1 + x)(1 + y) and B’s by (1 + y), where x is the ratio change and y is B’s move, the gross PnL is NA × ((1 + x)(1 + y) − 1) − NB × y. For equal legs that reduces to N × x × (1 + y).
The worked grid above shows it: with $5,000 per leg a +5% ratio change is +$250 with BTC flat and +$225 with BTC down 10%. Use the scenario fields to try your own ratio target. Swap the legs for the opposite trade, or pick other assets from the list to trade a different pair.
Liquidation, margin and funding of a pair
Each leg has its own isolated liquidation price, computed with the Hyperliquid tier formula and the maintenance margin of that asset. On a cross-margin account the legs share one balance, so the better question is how far the ratio can fall, with B fixed, before equity drops to the combined maintenance margin: x* = (maintenance − account balance) ÷ NA. That is an approximation that takes maintenance at entry notionals and ignores fees and funding.
Funding nets out when the rates and sizes match. Otherwise you pay on the long and receive on the short when rates are positive: net per interval = (fA × NA − fB × NB). Round-trip fees apply to both legs on entry and exit, so a pair pays roughly twice what a single position of the same size does. To compare fee schedules before you trade, use the trading cost calculator; for single-leg margin tiers see the Hyperliquid calculator.
Assumptions: both legs on one venue, cross margin with the account balance shown, constant funding, prices are examples when the live request fails. A pair is hedged against the market, not against a change in the relationship between the two assets, and the ratio can move against you for longer than your margin lasts.
FAQ
What is a pair trade in crypto?
A long position in one asset and a short in another, held together. The result depends on the relative move of the two, so a rise or fall of the whole market largely cancels.
Should the legs be dollar-neutral or beta-hedged?
Dollar-neutral is simplest and exact for equal notionals. Beta-hedging sizes the short by how much the long usually moves per 1% move in the short asset, which cancels more of the market exposure if the beta estimate holds.
How do I calculate the PnL of an ETH/BTC ratio trade?
For equal dollar legs, PnL = N × x × (1 + y), where x is the ratio change and y the BTC move. With $5,000 per leg and a +5% ratio change, that is +$250 if BTC is flat.
What happens to funding on a pair?
You pay funding on the long and receive it on the short when rates are positive, so only the difference between the two markets matters. The calculator shows the net per day and over your holding time.
Can both legs be liquidated?
Each leg has its own isolated liquidation price. With cross margin the two share equity, so liquidation depends on the combined loss reaching the maintenance margin, shown as the ratio move that wipes the account.
Related: trading cost calculator · Hyperliquid calculator · cross vs isolated margin · position size calculator · methodology · Trade with LeverUp via partner link (not advice).