what is pnl

PnL, or Profit and Loss, can refer to different concepts depending on the context. In finance, it commonly refers to the Profit and Loss statement, which is a financial statement that summarizes the revenues, costs, and expenses incurred during a specified period, providing information about a company’s ability to generate profit. In investment banking, PnL explained is an income statement with commentary that attributes or explains the daily fluctuation in the value of a portfolio of trades. Additionally, in trading, PnL is a critical financial metric used to determine the net profit or loss from trades, calculated based on the difference between the asset's entry and exit prices, minus any fees paid for the trade