Definition

Profit and Loss (PnL) measures the financial outcome of a trade, strategy, or portfolio over a specific period. It reflects gains or losses after accounting for execution price, position size, and applicable fees.

PnL may be calculated at the individual trade level or aggregated across a portfolio.

Example in Context

If a trader buys an asset at $1,000 and sells it at $1,100, the gross PnL is $100 before accounting for fees.

FAQs

Is PnL the same as ROI?

No. PnL measures dollar gains or losses, while ROI expresses returns as a percentage of capital deployed.

Can PnL be negative?

Yes. Negative PnL reflects a loss.

Does PnL include fees?

It may include fees depending on how it is calculated.

Related Terms