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In the cryptocurrency market, the term PNL often appears and plays a vital role in tracking investors' profits and losses. So, what is PNL exactly? How is PNL accurately calculated? This article will help you understand the concept of PNL, its importance in cryptocurrency trading, and how to track PNL on well-known exchanges, such as gate.
What is PNL?
PNL (profit and loss) - this is the profit and loss in the agreement with financial and Cryptoassets. It is an indicator that helps investors control their trading activities and determine the actual profit or loss during investment.
There are two main types of PNL:
- PNL realized: actual profit or loss obtained by the investor after closing the deal.
- Unrealized PNL: temporary profit or loss from an open position, calculated based on the current market price.
How to calculate Cryptocurrency in trading