How PNL is calculated

You can calculate PNL on the Binance exchange using one of two formulas:

If the trade was opened in Long: unrealized PNL = (Marking price – Initial buy rate) * Position size.

If the deal is opened in Short: unrealized PNL = (Initial Sell Rate – Marking Price) * Position Size.

The tagging price is the value of the asset at the time of the close of the trade (or at the time of the PNL calculation).

Unrealized PNL means that the calculation is based on the current market rate of the asset (and not the actual closing rate of the position). It is such a floating indicator for an open position, which demonstrates how much you will earn (or lose) if you close the position right now. It is based on real-time value and does not include exchange fees.