lengistonjorry
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PnL (Profit and Loss) in trading is a key metric that shows how much money a trader has earned or lost on their investments over a specific period. It is calculated by comparing the buying price of an asset with its selling price while also accounting for trading fees, commissions, and other costs. PnL can be classified as realized PnL , which reflects profits or losses from trades pnl means that have been closed, and unrealized PnL , which represents the current gain or loss on open positions based on market prices. Monitoring PnL helps traders evaluate the effectiveness of their strategies, manage risk, and make informed decisions. By regularly analyzing PNL, traders can identify strengths, minimize losses, and improve their overall trading performance in dynamic financial markets.