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