"PnL" stands for "Profit and Loss." It is a financial term used to describe the overall gain or loss on an investment or trading position over a specific period of time. PnL is a measure of the performance of a financial asset, portfolio, or trading strategy. When a trader or investor closes a position, they calculate the PnL by taking the difference between the selling price and the buying price. If the selling price is higher than the buying price, the result is a profit. Conversely, if the selling price is lower than the buying price, it results in a loss. PnL is a key metric in assessing the success or failure of trading activities. It is often expressed in both absolute terms (dollar amount) and as a percentage of the initial investment. Monitoring PnL helps traders and investors make informed decisions, adjust their strategies, and manage risk effectively.
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