--- title: "What Is PnL? Profit and Loss in Trading - Get Funded Now" description: "PnL stands for profit and loss. What it means in trading, realised vs unrealised (open) PnL, how it is calculated, and why net PnL is the number to watch." url: "https://getfundednow.com/learn/what-is-pnl" language: "en" last_modified: "2026-09-22" publisher: "Get Funded Now (getfundednow.com)" translations: es: "https://getfundednow.com/es/learn/what-is-pnl" pt-BR: "https://getfundednow.com/pt-br/learn/what-is-pnl" fr: "https://getfundednow.com/fr/learn/what-is-pnl" it: "https://getfundednow.com/it/learn/what-is-pnl" de: "https://getfundednow.com/de/learn/what-is-pnl" disclosure: "All trading at Get Funded Now is simulated. 'Funded' means a simulated or virtual account; GFN is not a broker and does not hold client funds." --- Risk and performance # PnL: profit and loss, measured. PnL stands for profit and loss: the money a trade or an account has made or lost. Realised PnL comes from closed positions and is fixed; unrealised, or open, PnL is the running result on positions still held, and changes with every price move. Net PnL is what remains after commission, spreads and swaps. [All trading lessons](https://getfundednow.com/learn) · [Read the trading rules →](https://getfundednow.com/rules) ## Realised vs unrealised PnL The distinction is whether the position is still open. Once a trade is closed, its gain or loss is realised - it has happened, and it no longer moves. While it is open, the gain or loss is unrealised: a mark-to-market figure that goes up and down with price, and that can turn from profit to loss before the trade is closed. Trading dashboards usually show both. Realised PnL (sometimes labelled RPnL or R P&L) sums the closed trades; open PnL (floating PnL, OPnL) is the live result on what is still held. Equity is the balance plus open PnL. **The PnL labels you will see** | Label | What it measures | Does it move? | | --- | --- | --- | | Realised PnL | Result of closed positions | No - fixed once closed | | Unrealised or open PnL | Result of positions still held, at the current price | Yes, with every tick | | Gross PnL | Price result before costs | - | | Net PnL | Price result after commission, spread and swap | - | | Cumulative PnL | Running total over a period | Grows or shrinks trade by trade | ## How PnL is calculated For a single trade, PnL is the price change multiplied by the position size, in the account currency: (exit price minus entry price) times units for a long, the reverse for a short. On a currency pair the price change is usually counted in pips, and the value of one pip depends on the pair and the [lot size](https://getfundednow.com/learn/lot-size). The [profit calculator](https://getfundednow.com/tools/profit-calculator) does this for a trade you specify, including commission. It shows what a given move produces; it does not predict the move. ## Gross vs net PnL Costs sit between the price result and the money. Commission is charged per lot, the spread is paid on entry, and positions held overnight can carry a swap. On a strategy that trades often with small targets, the difference between gross and net PnL can be most of the result. Track net PnL, and track it per trade and cumulatively. A record that is positive gross and negative net is a losing record. Step by step ## How to identify it Read a PnL figure by asking four questions before you trust it. 1. Is it realised, unrealised, or both combined? 2. Is it gross or net of commission, spread and swap? 3. Which period does it cover - one trade, one day, or cumulative? 4. Is it in the account currency, and at what exchange rate if the instrument is priced in another? Worked example ## The concept, walked through ### One trade's PnL, from gross to net An illustrative trade described in words, using the common convention of 100,000 units per standard lot. It is not a record of a real trade. 1. 1. Trade Buy 1 standard lot of a USD-quoted pair, 100,000 units, and close it 50 pips higher. 2. 2. Gross PnL 50 pips x 0.0001 x 100,000 units = $500. 3. 3. Commission At GFN's published commission, $3.50 per side, $7 per lot round turn, one lot costs $7 for the round trip. 4. 4. Net PnL $500 - $7 = $493, before any spread paid on entry or overnight swap. While the trade was open, its unrealised PnL moved with every price change and could have been negative; only on closing did it become a realised figure. Common mistakes ## Where traders go wrong ### Counting open profit as made Unrealised PnL is not yours until the position closes, and it can reverse. ### Judging a strategy on gross PnL Commission, spread and swap are part of the result. High-frequency strategies are the most exposed. ### Ignoring open losses because the balance looks fine Equity includes open PnL, and most account limits measure equity, not balance. Limitations ## What it cannot tell you No chart concept predicts price. These are the limits worth keeping in view. - PnL measures what happened; it says nothing about how much risk was taken to get it. Two identical PnL figures can come from very different drawdowns. - A short record's PnL is dominated by a few trades and is weak evidence of a repeatable edge. In an evaluation ## Using it on a simulated account On a GFN simulated account, the risk limits are measured on equity - balance plus open PnL - so an unrealised loss counts before the trade is closed. On a $100,000 account the daily loss limit is $3,000 on Instant or $5,000 on 1 Step and 2 Step. Commission comes out of the account like any loss, so plan around net PnL, not gross. - [What is the daily loss limit?](https://getfundednow.com/rules/daily-loss-limit) - Trading rule - Measured on closed and floating losses together - 3% on Instant and 5% on 1 Step and 2 Step. - [What does trading cost?](https://getfundednow.com/rules/commission) - Trading rule - The per-lot cost between gross and net PnL. - [What are the profit targets?](https://getfundednow.com/rules/profit-target) - Trading rule - What the account's PnL is measured against during an evaluation. Questions ## Asked about this concept Profit and loss. In trading it is the money a position or account has made or lost, either on closed trades (realised) or on positions still open (unrealised). Realised PnL comes from positions that have been closed and no longer changes. Unrealised, or open, PnL is the current result on positions still held, and moves with the price. The running total of profit and loss over a period, trade after trade. It is usually shown net of costs and plotted as an equity curve. Keep learning ## Related lessons - [Lot Size in Forex: What It Means](https://getfundednow.com/learn/lot-size) - Risk and performance - Standard, mini and micro lots, what 0.01 lot is worth, how gold lots differ, and how to work out the lot size a stop and a risk amount allow. - [Intraday Trailing Drawdown, Explained](https://getfundednow.com/learn/intraday-trailing-drawdown) - Risk and performance - A trailing loss limit that moves up with your highest equity during the day, including unrealised profit - and why that makes giving back gains costly. - [Risk On, Risk Off: Meaning in Markets](https://getfundednow.com/learn/risk-on-risk-off) - Risk and performance - The shorthand for markets moving together as investors seek or shed risk - which assets usually go which way, and why the pattern breaks. - [Revenge Trading and Going Full Port](https://getfundednow.com/learn/revenge-trading) - Risk and performance - Trading to win back a loss immediately - often by going full port, all in on one position - why losses trigger it, and the rules that interrupt it. Sources ## What this page relied on 1. [Realized gain or loss](https://www.investor.gov/introduction-investing/investing-basics/glossary/realized-gain-or-loss) - US Securities and Exchange Commission, Investor.gov. Retrieved 23 September 2026. The definition of a realised gain or loss once a position is closed. 2. [Unrealized gain or loss](https://www.investor.gov/introduction-investing/investing-basics/glossary/unrealized-gain-or-loss) - US Securities and Exchange Commission, Investor.gov. Retrieved 23 September 2026. The definition of an unrealised gain or loss on a position still held. 3. [Foreign exchange market](https://en.wikipedia.org/wiki/Foreign_exchange_market) - Wikipedia. Retrieved 23 September 2026. The standard lot of 100,000 units of the base currency and the worked pip example. Educational content only, not investment advice or a recommendation to trade. Chart concepts describe what price has done; none of them predicts what it will do, and trading any strategy can lose money. Get Funded Now accounts are simulated and trade virtual funds. Last reviewed 22 September 2026. Ready when you are ## Your capital stays yours. The risk is ours. One evaluation fee, no time limits and up to 90% of simulated profits. Pick an account size and your credentials arrive by email within minutes. [Start your challenge →](https://getfundednow.com/challenges) · [Read the rules](https://getfundednow.com/faq) No subscriptions or hidden fees Payouts every 14 days $400,000 max total allocation --- Source: https://getfundednow.com/learn/what-is-pnl Facts about Get Funded Now in one file: https://getfundednow.com/llms.txt