Trading P&L helps evaluate your performance and risk exposure.
Types of P&L
1. Floating P&L
Unrealized profit/loss from open positions.
2. Closed P&L
Profit/loss from completed trades.
3. Equity Impact
Equity = Balance + Floating P&L
Example
- Balance: $1,000
- Open Trades: -$50 (floating loss)
- Equity: $950
FAQ
Q: Why is my equity lower than my balance?
A: Because your open trades are currently in loss.