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Basics

P&L (profit and loss) — definition & meaning

The money you have gained or lost on your trades.

P&L is your profit and loss — the money made or lost on your positions. Unrealised P&L is on open trades; realised P&L is locked in once you close.

Tracking P&L honestly, including costs like spread and swap, is essential. Many traders flatter themselves by ignoring the small costs that quietly add up.

The information on Trding.io is for general information only and is not investment advice. Trading involves a real risk of losing money, and most retail traders lose. Never trade money you cannot afford to lose.

Related terms

Equity
Your account balance adjusted for the profit or loss on open trades.
Balance
The cash in your account from closed trades, before open P&L.
Spread cost
The actual money the bid-ask spread costs you on a trade.
Drawdown
The drop from a peak to a trough in your account value.
Long
Buying an asset expecting its price to rise so you can sell higher.
Short
Selling an asset you expect to fall, aiming to buy it back cheaper.

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