#TradeStories

What is PnL?

It refers to the amount of money you have made or lost in a trade or over a specific period. There are two main types:

1. Realized PnL (Realized Profit/Loss):

It is the profit or loss that has already been confirmed because you closed the trade. For example, if you bought a stock at $100 and sold it at $120, your realized PnL is +$20 per share.

2. Unrealized PnL (Unrealized Profit/Loss):

It is the potential profit or loss of a position that is still open. If you bought a stock at $100 and it is now worth $120, your unrealized PnL is +$20, but it can change depending on the market.

Summary:

PnL is a key metric for evaluating trading performance.

It helps traders know if they are making or losing money on their trades.