Well, I noticed that many people in the crypto community don't really understand what PNL is in trading. It's a shame because it's literally your best friend for knowing whether you're making a profit or not.

So here it is, just imagine: you buy something, you sell it for a higher price. The difference between what you spent and what you received is your PNL. It's as simple as that. PNL stands for Profit and Loss, so profit and loss. If the number is positive, you've gained. If it's negative, you've lost. That's all.

The formula is really basic: Sale price minus purchase price, multiplied by the quantity, minus fees. That's your PNL. Let's take a concrete example. You buy 0.1 BTC at $40,000, which costs you $4,000. Then you sell at $42,000, and you receive $4,200. Mathematically, you have a $200 profit, but after platform fees, let's say you end up with $198. There you go, that's your positive PNL.

It's useful to know that there are two types of PNL. There is unrealized PNL, which is when you still have your position open; the profit or loss exists on paper but you haven't sold yet. And then there's realized PNL, which is when you've actually closed your trade; that's concrete.

In trading, you'll also hear about ROI, which is the return on investment in percentage. And there are leverage and margin that can amplify your PNL, either up or down. That's where it gets interesting but also riskier.

The important thing to understand is that your PNL constantly changes if you have open positions. Prices move, so your profit or loss also moves. That's why we say it's volatile. One day you're in the positive, the next day you could be in the negative, depending on market movements.

Basically, if you're trading, PNL is the key indicator you need to check. It's literally your financial thermometer. Whether it's SOL, BNB, TON, or any other asset, the principle remains the same. Understanding your PNL is already half the way to becoming a good trader.