PnL is the difference between the current market price of an asset and its purchase price. PnL can be used to measure both realized and unrealized gains or losses.
On Binance, PnL is represented as a percentage and is displayed in the “Profit & Loss” column on the “Orders” page.
PnL can be a useful metric for traders to track the performance of their investments over time. By comparing the current market price of an asset to its purchase price, traders can quickly see if they are making a profit or loss on their investment. Additionally, PnL can be used to measure both realized and unrealized gains or losses.
Realized gains or losses are those that have been incurred through actual trades. Unrealized gains or losses are those that exist on paper but have not yet been realized through trades.
While PnL can be a helpful metric for traders, it is important to remember that it only represents a snapshot in time. Market conditions can change rapidly, so it is possible for a trader to be in the red today but in the black tomorrow.
As such, PnL should not be used as the sole basis for decision making but rather one of several factors that traders take into account when making trading decisions.