Scan to Download Gate App
qrCode
More Download Options
Don't remind me again today

What is PNL in trading? The jargon-free guide you need.

robot
Abstract generation in progress

PNL = Profit and Loss (Profit and Loss). It sounds technical, but it's simple: it's your bottom line after closing a trade.

Two possible scenarios:

Positive PNL = You made money 💰 You opened a position with $100, closed it with $150. Your PNL = +$50. Congratulations, it's a W.

Negative PNL = You lost money 📉 You bought at $100, sold at $80. Your PNL = -$20. That's how it goes in trading, not every day is sunshine.

In real trading

In professional markets, PNL is not just a number. Traders analyze the PNL explained: a daily breakdown that shows what moved the price, what made you money, and what cost you money. It's like an audit of your decisions.

The basic formula:

Daily PNL = Current portfolio value - Previous value

If your portfolio was worth $1000 yesterday and today it is worth $1100, your PNL = +$100. That's right. Professional traders check this every morning as their first task.

View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
  • Pin
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)