Method
Calculate a trade’s gross and net P&L
For a simple linear long position, gross P&L is exit price minus entry price, multiplied by quantity and the contract multiplier. Net P&L adds the signed fees and funding actually known. Missing data is not zero.
- Calculate gross P&L
- Move from gross to net
- Account for partial exits
- Keep currencies separate
- Frequently asked questions
Calculate gross P&L
Long: (exit − entry) × quantity × multiplier. Short: (entry − exit) × quantity × multiplier. These formulas apply to linear instruments, not inverse contracts or every options transaction.
Move from gross to net
Subtract fees paid and add rebates received. Add funding received and subtract funding paid. Always check the source’s sign convention. Deposits and withdrawals are not trading gains or losses.
Account for partial exits
One order can contain several executions at different prices. Reconstruct entry and exit quantities before calculating an average. Do not treat an open position as a fully realized trade.
Keep currencies separate
100 USD and 100 EUR do not make a result of 200 in one currency. Compare amounts in the same currency and document conversions separately. Statistics do not replace accounting or tax statements.
Verification example
| Component | Example in USD |
|---|---|
| Long: 2 units, entry 100, exit 110 | +20 |
| Entry and exit fees | −2 |
| Funding paid | −1 |
| Net result with complete data | +17 |
Illustrative example, not actual performance: 20 − 2 − 1 = 17 USD. Without imported funding, the displayed result may be 18 USD; this is not the statement’s complete net result.
Frequently asked questions
Why is P&L unknown?
An entry, price or other required data may be missing. Complete and check the history. Replacing unknown values with zero would distort statistics.
Should the account balance equal P&L?
No. The balance may include deposits, withdrawals, open positions, dividends and other flows outside closed-trade results.