What is P/L?
Day P/L stands for “Day Profit/Loss” and is a measure of how much money a trader or investor has made or lost in a particular trading day. It’s the difference between the value of the assets or investments owned by the trader at the beginning of the day AND their value at the end of the day. This includes any gains or losses incurred from buying or selling assets or investments during that trading day.
A positive Day P/L indicates a PROFIT while a negative P/L indicates a LOSS.
What is Unrealized P/L?
Unrealized P/L is the amount of money you could make or lose on a stock you own, but haven't sold yet.
For example, an investor bought 1,000 shares of a particular stock at Php100 per share, and the current market price is Php110 per share, the unrealized profit would be:
Unrealized P/L = (Current Market Price – Purchase Price) x Number of Shares
Unrealized P/L = (Php110 – Php100) x 1,000
Unrealized P/L = Php10,000
What is Realized P/L?
Realized P/L is the actual amount of money that you earned or lost on a stock that has been sold or bought.
For example, an investor bought 1,000 shares of a particular stock at Php100 per share and sold them at Php110 per share, the realized profit would be:
Realized P/L = (Sell Price – Buy Price) x Number of shares
Realized P/L = (Php110 – Php100) x 1,000
Realized P/L = Php10,000
In this example, the investor realized a profit of Php10,000. If, on the other hand, the investor sold shares for Php90 per share, the realized P/L would be:
Realized P/L = (Sale Price – Purchase Price) x Number of shares
Realized P/L = (Php90 – Php100) x 1,000
Realized P/L = -Php10,000
In this example, the investor realized a loss of Php10,000