What Is Profit & Loss (PnL)?

Patrick Curtis

Reviewed by

Patrick Curtis WSO Editorial Board

Expertise: Investment Banking | Private Equity

Profit and Loss (or PnL) is a common term used in trading and is extremely self-explanatory. It simply refers to the total profit or loss made by an individual or group over a certain time period.

P&L Definition and Example

For example, an individual trader may have a daily PnL limit such as +/- $50,000 meaning the maximum amount he will aim to make s $50,000 and if he loses $50,000 he will stop trading for that day.

Often times traders will receive a percentage of their P&L as a commission for making money for the firm. You can see an example of a P&L in spreadsheet form below.

Related Terms

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Patrick Curtis

Patrick Curtis is a member of WSO Editorial Board which helps ensure the accuracy of content across top articles on Wall Street Oasis. He has experience in investment banking at Rothschild and private equity at Tailwind Capital along with an MBA from the Wharton School of Business. He is also the founder and current CEO of Wall Street Oasis. This content was originally created by member WallStreetOasis.com and has evolved with the help of our mentors.