Profit and Loss

PnL (Profit and Loss) represents the total financial gain or loss resulting from a trading position. It is calculated as the difference between the buying price and the selling price of an asset, taking into account any fees, expenses, and other related costs. PnL reflects the actual realized profit or loss from a completed trade.

uPnL (Unrealized Profit and Loss), in contrast, refers to the potential profit or loss of an open position. It indicates what the profit or loss would be if the position were to be closed at the current market price. Since it is subject to market fluctuations, uPnL remains unrealized until the position is actually closed. This metric is crucial for evaluating the current value of open positions but does not represent actual profit or loss until realized.

At Mount, we calculate uPnL and PnL for both Long/Short and Open/Close positions using the following formulas:

$$uPnL=±(Mark Price−Entry Price)×Position Size$$

$$PnL(Open)=−Trading Fee$$

$$PnL(Close)=uPnL−Trading Fee$$