PnL means profit and loss: the gain or loss attributed to a trade, position or account over a defined period. A useful PnL figure identifies its currency, valuation price and treatment of costs.
From price movement to money
For a simple linear contract, gross long-position PnL equals quantity multiplied by exit price minus entry price. A short reverses that price difference. Inverse contracts use a different formula, so a linear calculation cannot be applied to every derivative.
Suppose a linear long covers two units, enters at 100 and exits at 110. Gross profit is 2 × (110 − 100) = 20 quote-currency units. If opening and closing fees total 2 and funding paid is another 2, net profit is 16, assuming no other adjustments.
Reading the displayed number
Unrealized PnL values exposure still open; realized PnL records amounts recognized through closes or other booked items. Platforms differ in whether displayed figures include fees, funding and partial-close results.
A percentage return also needs a denominator, such as margin or account equity. Deposits and withdrawals change account balances without themselves being trading profit or loss. Comparing two PnL figures therefore requires matching their scope, period and accounting conventions.