Profit and Loss

PnL, Profit and Loss, represents the overall financial gain or loss resulting from a trading position. It's the difference between the buying price and the selling price of an asset, factoring in fees, expenses, and other associated costs. PnL indicates the actual realized profit or loss from a trading activity.

uPnL, Unrealized Profit and Loss, on the other hand, refers to the potential or paper profit and loss of an open position, meaning the profit or loss that would be realized if the position were closed at the current market price. Subjected to market fluctuations, uPNL will not be locked in until the position is closed or realized. It's an important metric for assessing the current value of open positions, and does not reflect the actual realized profit or loss until the position is closed.

In Jungle, we use the following formula to calculate the uPnL and PnL respectively for Long/Short and Open/Close Positions:

$$uPnL=±(MarkPrice-EntryPrice)\times PositionSize$$ $$PnL(Open)=-TradingFee$$ $$PnL(Close)=uPnL-TradingFee$$