#pnl The Importance of PNL in Cryptocurrency Trading

If you are new to the world of cryptocurrencies, you may be wondering how profits and losses (PNL) work. PNL is a simple way to track your trading results—whether you are making gains or suffering losses. It’s like a performance card that shows how effective your trading strategies are and helps you decide if you need to make adjustments.

What is PNL?

PNL stands for Profits and Losses. It shows the financial outcome of a trade over a specified period. Here’s how it works:

Positive PNL: Indicates profits—it means that your trade generated more than it cost.

Negative PNL: Indicates a loss—it means that your trade cost more than it generated.

By monitoring your PNL, you can assess whether your trading strategy is on the right track or if you need to make changes.