Revenue and Loss, usually abbreviated, represents the online monetary results of buying and selling actions. It quantifies the distinction between the overall income generated from closed positions and the overall bills incurred, together with commissions, charges, and slippage. As an example, if a dealer buys a inventory for $10 and sells it for $12, much less $0.50 in fee, the revenue could be $1.50. Conversely, if the inventory was bought for $9, the loss could be $1.50, accounting for the fee.
Understanding the monetary consequence of trades is key to assessing buying and selling technique effectiveness and total portfolio efficiency. Monitoring these figures permits for figuring out strengths and weaknesses in a buying and selling method, finally informing crucial changes for improved profitability. Traditionally, calculating this metric was a guide course of, however trendy buying and selling platforms automate this calculation, offering real-time insights under consideration efficiency.