It means: Gains and Losses
It's how much money you made or lost in a trade.
📌 Basic formula:
PnL = Current position value - Initial value
Example:
You buy 100 USDT of BTC.
Now your position is worth 120 USDT.
PnL = 120 - 100 = +20 USDT → profit.
If it dropped to 90 USDT, the PnL would be -10 USDT → loss.
2. Cumulative PnL
It is the sum of all your gains and losses over a period of time or multiple trades.
📌 Example:
Trade 1: +10 USDT
Trade 2: -5 USDT
Trade 3: +8 USDT
Cumulative PnL = 10 - 5 + 8 = +13 USDT
This means that, in total, you have made 13 USDT after all trades.
In Binance (and most exchanges), the PnL in percentage tells you how much you have gained or lost in relation to your initial investment.
📊 How the calculation works
Formula:
PnL (%) = (Profit or Loss ÷ Initial Investment) × 100
Practical example:
You bought $50 in VET/USDC.
Now it is worth $55.
Profit = $55 - $50 = $5
PnL (%) = (5 / 50) × 100 = +10% ✅
If instead of rising it dropped to $45:
Loss = $45 - $50 = -$5
PnL (%) = (-5 / 50) × 100 = -10% ❌
📌 In futures or margin
If you use leverage, that percentage changes faster because the profit/loss is multiplied.
Example with leverage ×10:
Actual market movement: +2%
Your PnL (%) would be approximately +20% (and the same in losses).
Because of this, in futures, it becomes very risky even for the slightest mistake.
💡 In Binance, if the PnL is in green, you are winning; if it is in red, you are losing. The PnL is only definitive when you close the position (realized).