Profit Loss in Forex

Profit/Loss (P/L) is the financial result of a trade, position, account, or period, showing whether value was gained or lost.

Profit vs. Loss

A profit occurs when the final result is favourable after the relevant costs.

A loss occurs when the final result is unfavourable.

P/L can be shown as money, points, pips, percentages, or another measurement depending on the market and platform.

Realized and Unrealized P/L

Unrealized P/L changes while a position remains open.

Realized P/L is recorded after the position is closed.

This distinction matters because an open gain can disappear before a position is closed, while an open loss can also change.

Trading Costs Matter

The price movement alone may not equal the final account P/L.

Spreads, commissions, financing charges, conversion costs, and slippage can affect the actual result.

Why P/L Should Not Control Every Decision

Watching money fluctuate can trigger fear, greed, FOMO, and revenge trading.

A disciplined trader evaluates whether the trade still follows the plan rather than changing decisions only because the P/L number looks uncomfortable.

Key Takeaway

Profit/Loss is the financial outcome of trading activity. A complete P/L view includes both price movement and relevant trading costs.