Calculate profit and loss for stocks, options, futures, forex, and cryptocurrency trading with comprehensive risk analysis
PnL (Profit and Loss) is a financial metric that measures the net profit or loss from trading activities. It's calculated as the difference between the total revenue and total costs of a trade or investment.
The profit or loss before deducting costs like commissions, fees, and taxes.
The final profit or loss after deducting all costs and fees.
The profit or loss expressed as a percentage of the initial investment.
The return rate adjusted to an annual basis for comparison.
The largest peak-to-trough decline in portfolio value, indicating the maximum loss experienced.
A measure of risk-adjusted return, calculated as excess return per unit of risk.
The maximum potential loss over a specific time period with a given confidence level.
The standard deviation of returns, measuring the dispersion of returns around the mean.
Measures the compound rate of growth over a period, eliminating the impact of cash flows.
Accounts for the timing and size of cash flows, reflecting the actual investor experience.
Compares returns relative to the risk taken, using metrics like Sharpe ratio and Sortino ratio.
A: Stock PnL is calculated as: (Sell Price - Buy Price) 脳 Number of Shares - Commission + Dividends. This gives you the net profit or loss from your stock investment.
A: Gross PnL is the profit or loss before deducting costs like commissions, fees, and taxes. Net PnL is the final profit or loss after deducting all costs and fees.
A: Options PnL is calculated as: (Sell Price - Buy Price) 脳 Number of Contracts 脳 100 - Commission. For options, also consider intrinsic value and time value.
A: Annualized return is the return rate adjusted to an annual basis, allowing you to compare investments with different time periods. It's calculated as: (Total Return / Time Period) 脳 365 days.
A: Portfolio returns can be calculated using Time-Weighted Return (TWR) or Money-Weighted Return (MWR). TWR eliminates the impact of cash flows, while MWR accounts for the timing and size of cash flows.
A: Trading risks include market risk (price fluctuations), liquidity risk (difficulty selling), credit risk (counterparty default), and operational risk (system failures). Always use proper risk management.
A: To use the PnL calculator effectively: 1) Enter accurate data including all costs, 2) Consider time value of money for long-term investments, 3) Include all fees and commissions, 4) Use risk-adjusted metrics for comparison, 5) Regularly update your calculations.
A: The Sharpe ratio measures risk-adjusted return, calculated as (Return - Risk-Free Rate) / Standard Deviation. A higher Sharpe ratio indicates better risk-adjusted performance.
A: Forex PnL is calculated as: (Exit Price - Entry Price) 脳 Lot Size 脳 100,000 - Commission + Swap. The pip value depends on the lot size and currency pair.
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