PNL (Profit and Loss) refers to the overall financial outcome of trading or investing activities, showing the difference between realized profits and realized losses. Traders track PNL to measure performance across individual trades or an entire portfolio. It can be calculated in absolute terms (e.g., dollars gained or lost) or as a percentage relative to the investment.
Example:
A trader buys 1 ETH at $4,000 and later sells it at $4,400. Their realized PNL is +$400. If the same trader also lost $100 on another trade, their net PNL would be +$300.