What Is Profit & Loss (PnL)?

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.

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