"PnL" stands for Profit and Loss — a fundamental financial term used in business, trading, and accounting. Here's a quick breakdown:

🔹 What is PnL?

Profit and Loss (PnL) measures how much money a company, trader, or investment has gained or lost over a specific period.

🔸 Two Main Types of PnL:

Realized PnL:
➤ Actual profits or losses from closed positions or completed sales.
✅ Locked in.

Unrealized PnL (also called Paper PnL):
➤ Gains or losses on open positions that haven't been closed yet.
📉 Can change based on market price.

📊 Basic PnL Formula:

PnL = Total Revenue - Total Costs

In trading:

PnL = (Selling Price - Purchase Price) × Quantity - Fees

🔹 Example:

You buy 1 BTC at $40,000 and sell it at $45,000:

PnL = (45,000 - 40,000) × 1 = $5,000 profit

🔸 Why is PnL Important?

Helps track performance

Informs decision-making

Used in tax reporting

Essential for traders, investors, and companies

Would you like a PnL template, or are you referring to a PnL statement in Excel, crypto, or accounting?