Hello, young crypto trader! Have you heard those mysterious letters – PNL – and don’t understand what they mean? Don’t worry, I’ll explain everything to you. PNL is your personal crypto counter that shows you how much you’ve made or lost on Binance.
⁉️ What is PNL?
PNL (Profit and Loss) is, in simple words, your profit or loss. It is an indicator that tells you whether you are in the black or in the red. Imagine that you opened a small shop selling crypto tokens. PNL is like your accountant who calculates how much money you have earned or lost per day.
🧲 How does it work on Binance?
On Binance, PNL shows your profit or loss on each trade you make. It is calculated based on the difference between the price you bought the asset at and the price you sold it at.
🎯 Example 1: You are in the black!
You bought 1 $ETH for $3,000 USDT. A week later, the price of ETH rose to 3,500 USDT, and you decided to sell your ETH.
* Purchase price: 3000 USDT
* Selling price: 3500 USDT
* Profit: 3500 - 3000 = 500 USDT
Your PNL is 500 USDT. You earned 500 dollars!
↘️ Example 2: You are in the red...
You bought 1 $BTC BTC for 50,000 USDT. A month later, the price of BTC dropped to 45,000 USDT, and you decided to sell your BTC to avoid losing even more.
* Purchase price: 50,000 USDT
* Selling price: 45,000 USDT
* Loss: 45,000 - 50,000 = -5000 USDT
Your PNL is -5000 USDT. You lost $5000.
Why is NLP so important?
* Control over your money: PNL shows you where your money is going. You see which trades are profitable and which are losing.
* Strategy Analysis: PNL helps you understand whether your trading strategy is working. If you are constantly in the red, it means you need to change something.
* Learning from mistakes: NLP shows you your mistakes. You can analyze them and avoid repeating them in the future.
Where to find PNL on Binance? $SOL
PNL can be found in your Binance trade history. There you will see the PNL for each trade separately, as well as the total PNL for a certain period.
Tips for you:
* Don't be afraid of losses. They are part of trading. It is important to learn from them.
* Always analyze your PNL. This will help you become a better trader.
* Don't let emotions drive your decisions. NLP is about numbers speaking for themselves.
PNL is your personal crypto calculator. Use it to become a successful trader!