What is P&L: a complete analysis of the profits and losses of your trading account

P&L is an indicator that helps understand how successful your trading activity has been. The P&L (profit and loss) analysis function allows users to identify the exact amount of earned or lost capital over a selected period and to review the results of their trading strategy in detail. It is an indispensable tool for evaluating trading performance and making informed decisions about future operations.

How P&L is calculated for a single trading account: key metrics

The system calculates several types of P&L metrics, each reflecting different aspects of your trading activity. Understanding these metrics is critical for assessing effectiveness.

P&L for today is calculated as the difference between the current capital and its starting amount at 00:00 UTC, minus net asset inflow (total inflow minus total outflow). This metric allows you to track changes in your portfolio throughout a trading session.

P&L for 7 days shows how your capital has changed over the week. The formula is similar to the daily indicator but covers the entire week, accounting for all account operations.

Cumulative P&L displays the total result for the selected period — the difference between the capital at the end and the beginning of the period, considering net asset inflow. This metric best demonstrates the actual profit or loss from your trading activity.

Cumulative P&L in percentage provides a relative assessment of investment efficiency. It is calculated as the percentage ratio of cumulative P&L to the initial capital increased by asset inflows. This indicator is most convenient for comparing performance with other traders or market indices.

Daily P&L is a detailed option. Each day is calculated separately, and you receive a list of all daily P&L figures in chronological order, which can be exported for further analysis.

Practical example: how P&L works in real trading

Let’s imagine trader A, starting with a portfolio consisting of 1 BTC (at 43,000 USDT) and 1 ETH (at 2,400 USDT). The initial capital is 45,400 USDT.

The next day (T+1), the BTC price rises to 45,000 USDT, and ETH to 3,000 USDT. Trader A opens a position in BTCUSDT and incurs a real-time loss of 10 USDT. Unrealized losses of 200 USDT also arise from derivative positions. On the same day, he withdraws 0.5 BTC and 1 ETH from his single trading account.

Calculating the result:

• Current asset value = (0.5 × 45,000) - 10 - 200 = 22,290 USDT
• Total asset inflow = 0 USDT
• Total asset outflow = (0.5 × 45,000 + 1 × 3,000) = 25,500 USDT
• P&L for this period = 22,290 - 45,400 + 25,500 = 2,390 USDT

This example demonstrates how P&L is a composite metric that accounts not only for market price changes but also for fund transfers and trading results.

Where to find P&L analysis in your account

Accessing the feature is quite simple. If you are using the mobile app, go to the single trading account assets section and tap on today’s P&L. On the web platform, you can navigate to the single trading account assets page and click the link to the detailed P&L analysis page.

Regular monitoring of your P&L metrics is key to understanding how effective your trading strategy is. Use this tool to analyze your results, identify trading patterns, and optimize your risk management methods.