#AccountPNL 📘
#AccountPNL – What It Is & Why We Use It
Account PNL stands for Account Profit and Loss. It's a critical metric in trading that tells you how much money you’ve made or lost in your account over a specific period.
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💡 What is Account PNL?
PNL = Profit and Loss
It shows the net result of your trades:
PNL = (Total Sell Value – Total Buy Cost) – Fees
There are two types:
✅ Realized PNL: Actual profit/loss from trades you’ve closed
🔄 Unrealized PNL: Floating profit/loss from open positions
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🧠 Why Do We Use Account PNL?
1. Track Performance: It shows if you're consistently profitable or need to adjust your strategy.
2. Risk Management: Helps you spot losses early and limit overexposure.
3. Tax Reporting: You’ll need accurate PNL records for crypto tax filings.
4. Strategy Testing: You can evaluate how well different trading setups work over time.
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✅ In Summary:
Account PNL = Your Scoreboard in Trading.
If you don’t track it, you’re trading blindly. Always know your numbers to grow your skills and your portfolio!
#CryptoBasics #TradingTips #KnowYourPNL
Want a tool or sheet to track your PNL?