What is total profit and loss (P/L)?

Understanding Total Profit and Loss (P/L)

Total Profit and Loss (Total P/L) represents the cumulative financial outcome of all closed and open positions in an account. It reflects the combined impact of realised P/L (from closed trades) and unrealised P/L (from open positions still subject to market fluctuations).

How Total P/L Is Calculated

• Realised P/L – Gains or losses from positions that have been closed (e.g., selling an asset at a higher price than the purchase price).

• Unrealised P/L – Floating gains or losses from open positions (calculated based on current market value).

• Adjustments – May include fees, financing costs, corporate actions, and currency movements affecting position valuation.

Example Calculation (AUD-Based Account)

Assume you bought 100 BHP shares at AUD 50 per share, and later sold them at AUD 55 per share:

• Realised P/L = (55 – 50) × 100 = AUD 500 profit

Meanwhile, you hold 200 Rio Tinto shares, bought at AUD 120 per share, with a current market price of AUD 115:

• Unrealised P/L = (115 – 120) × 200 = AUD -1,000 floating loss

Total P/L Calculation

Total P/L = Realised P/L + Unrealised P/L = AUD 500 – AUD 1,000 = AUD -500 (net loss)

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