💰Understanding your profit and loss

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The Tool to Improve Your Investing Strategy Cryptocurrency trading is highly volatile, so understanding the concept of ​​ profit and loss (PnL) is essential for informed decisions . PnL tells you how much money you've made or lost over a certain time and, therefore, helps you stay aware of how well your trades are doing and if your investing strategies are working. This newsletter provides a quick overview, with more details in our full article. PnL explained What Is PnL? Profit and loss (PnL) is a metric for assessing financial performance and the effectiveness of trading strategies. PnL can be realized (profit or loss from trades you've completed) & unrealized (potential profit or loss on trades you're still holding). Examples of PnL Calculation Long Trade: Buying 1 BTC at $50,000 and selling at $60,000 results in a realized profit of $10,000. Short Trade: Selling 1 ETH at $2,500 and buying back at $2,000 results in a realized profit of $500. PnL Calculation Methods FIFO (First-in, First-out): Assumes the first assets bought are the first sold. LIFO (Last-in, First-out): Assumes the last assets bought are the first sold. Weighted Average Cost: Averages the cost of all assets to calculate PnL. Swap coins & try PnL Have you enjoyed this letter? © Changelly 2015—2024 Get access to mobile-only rates Download the app to get exclusive benefits: Download About  |  Privacy Policy Manage Subscription Any information provided in this email does not constitute investment advice or investment recommendation nor does it constitute an offer to buy or sell or a solicitation of an offer to buy or sell digital assets or other financial instruments described in this email. In particular, this information should not be used as a substitute for suitable investment and product-related advice. Unless expressly stated otherwise, all pricing information is non-binding. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information in this email before making any decisions based on such information.