![Crypto Terms Glossary: What is Profit and Loss (P&L)? Crypto Terms Glossary: What is Profit and Loss (P&L)?](/img/71/1111/what-is-profit-and-loss-pl-sm.webp)
Profit and loss (P&L) is a macro-level measurement of how much capital has been gained or lost through trading for an individual or institution. P&L is an important datapoint for institutional investment firms. Unrealized P&L represents the amount of profit or loss that a trader has taken since opening a particular position, and is a useful metric for trading derivatives.