I just saw many beginners asking what PNL is, and this concept can indeed be confusing. Today I will clarify it for everyone because understanding PNL is really important for your trading decisions.

PNL stands for Profit and Loss. It means profit and loss. But there is a key difference here that many people tend to confuse.

What is unrealized PNL? It is the paper profit or loss before you sell. For example, if you bought ETH at a cost of 3000 and it has now risen to 3500, then your unrealized profit is 500. But this money is not yours yet because you haven't actually sold.

Realized PNL is what you truly lock in. When you sell at 3500, your realized PNL becomes +500, which is truly yours. This difference is very important; don’t mistake paper profit for actual gains.

There is also a very useful metric called daily PNL, which is the total profit and loss accumulated throughout the day. If it shows green, it means you made money today; if red, it means you lost money today. This data updates in real time, allowing you to quickly understand your trading status today.

Why focus on PNL? Because it’s not just about whether you are making or losing money. Knowing how to read PNL can help you make more rational decisions—when to cut losses, when to take profits—these clues can be found from this indicator.

Now let’s look at the performance of mainstream trading pairs. BTC is around 79.14K, down 1.07% in 24 hours. ETH is at 2.25K, down 0.53%. BNB performs slightly better, at 670.50, up 2.86% in 24 hours.

How has your PNL been this week? Share in the comments section and see how everyone’s recent trading status is.