What is profit and loss (PNL) and how to calculate?

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Profit and loss (PNL) is used to describe the change in the value of an investor or merchant's positions. PNL may or may not be performed. When you have open positions, your PNL has not happened, that is, it still changes in response to market movements. When you close your positions, unprecedented PNL becomes PNL.
"There are two main types of PNL. Realized PNL"
1= Realized pnl. It is calculated based on your closing price and input price. Since the PNL realizes the profit or damage caused by closed positions, it does not have a direct relationship with the signal price, it is only related to the price of the orders.
2= Unrealized PNL: It constantly changes and is the primary driving force of liquidations. . Therefore, the sign price is used to ensure that the undefined PNL calculation is accurate and fair.

There are a few important points to consider in PNL calculations:
1 = position size: The size of your position directly affects your PNL. The larger your position, the greater your potential profit or loss caused by price movements.
2 = Price Movements: Price movements determine your PNL. If you have a long position and the price rises, you will profit. However, if the price decreases, you will hurt. If you have a short position, the opposite is valid.
3 = Leverage: Leverage can increase your potential profit or loss. However, the leverage also increases the risk. Therefore, you should be careful when using leverage.
4 = Transaction Costs: Processing costs can often affect your PNL in the form of commissions and trading fees. These costs are usually collected as a certain percentage or a fixed amount per process.
5 = Market conditions: Market conditions, especially volatility, may affect your PNL. In a volatile market, price movements can be greater, which means a greater potential profit or damage.
These factors are just a few of the many factors that may affect your PNL. Keep in mind that it is important to calculate and director of your PNL correctly, because this is an important part of your general trade strategy and risk management.

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