What is PNL on Binance? Understand PnL to invest effectively on Binance

What is PnL on Binance? What does PnL mean in tracking and improving transaction efficiency? It is a question asked by many newbies to Binance. The following article learns about PnL on Binance to effectively exploit this information into capital management.

What is PNL on Binance?

PnL on Binance is the English acronym for Profit and Loss, which means profit and loss. PnL on Binance is understood as a profit and loss analysis report on your Binance accounts, such as profit and loss in real-time, including holding assets and open trades. The PNL will change according to market fluctuations for open trades or holding assets. PnL numbers are only officially confirmed and do not fluctuate with completed or sold-out transactions in wallets on Binance.

• See more: How to view profit and loss on Binance?

What is the formula for calculating PnL on Binance?

PNL on Fiat and Spot accounts:

Yesterday’s PNL = Total Assets in Spot Account Yesterday (at 24:00:00 UTC) – Today’s Initial Total Assets (at 00:00:00 UTC) – Transfers and Deposits yesterday’s net money.

The data update time will be in UTC+0 time zone. Maintenance time is from 0 am – 2 am (UTC+0) every day. During this time, yesterday’s PNL will not be displayed.

PNL on Future account:

Transaction costs (e.g., commissions, funding, and liquidation fees) are excluded from the calculation of the PNL. Account-level P&L analysis includes transaction and payment P&L and unrecorded exchange rate P&L from holdings, all priced on a USD basis.

With USDT margin Futures, PNL is calculated by the formula:

• Long = (Exit Price – Entry Price) * Quantity
• Short = (Entry price – Exit price) * Quantity

Margin contract in Coin, PnL calculated by the formula:

• PNL = Trading direction * Quantity * contract multiplier * (1/entry price – 1/exit price)
• Trading direction: long is 1, short is -1

PNL on Margin account:

Profit and loss are calculated by taking the BTC and USD value of the margin account at the beginning of the period compared to the end of the period, excluding changes due to transfers. The fiat value of PnL is not just PnL in BTC after calculating the fiat currency conversion rate. This data is for reference only.

How to use the PNL calculator on Binance Future

Binance Future provides an automated calculator that allows traders to calculate expected profit and loss (PnL) before placing any Future order. This calculator can help you to calculate: PnL, Target Price, Liquidation Price, Maximum Open or Open Price. You do the following:

1. On Future’s order page, click the [Calculator] icon in the order window:

2. You choose Initial Margin, PnL, and ROE:

3. Select [Long] if the market is likely to rise or [Short] if the market is likely to fall. Then, you enter the entry price, the exit price, quantity, and leverage level (drag the slider to choose the leverage level).

4. Click [Calculate] you will see the result of Initial Margin, PnL, and ROE on the right side of the screen.

Above is some information about PNL on Binance and how to calculate PNL. Knowing how to calculate PNL can help you forecast your profit to optimize investment efficiency on Binance.

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