What is Cumulative P&L?

Cumulative Profit and Loss (P&L) represents the overall profit or loss in your account over a selected time period. It includes:

  • Realized Trading P&L: Gains or losses from trades you have closed.
  • Unrealized (Open) P&L: Profit or loss on positions you still hold.
  • Dividends: Income credited from dividend payments.
  • Interest Charges: Costs associated with margin borrowing.
  • Fees: Applicable trading and account fees.

Note: P&L values are estimates for informational purposes only. They do not represent official tax reporting and may differ from actual realized gains or losses used for tax filings.

What is Day’s P&L?

Day’s Profit and Loss shows how your account value has changed during the current trading day. It reflects the combined effect of market price movements, trades, dividends, interest, and fees.

  • Start of Day Value: The market value of your holdings at the prior day’s close.
  • End of Day Value: The market value at today’s close.
  • Adjustments: Includes the effect of trades, dividends, interest, and corporate actions.

Scenarios:

  • If you buy shares today but don’t sell them, your Day’s P&L reflects unrealized changes in value.
  • If you open and close a position today, your Day’s P&L reflects realized gains or losses.
  • For options that expire worthless, the realized loss posts to Day’s P&L on the next business day.

What is Open P&L?

Open P&L (unrealized P&L) represents the profit or loss you would have if you closed an open position at the current market price.

Formula: (Current Market Price − Average Cost) × Quantity Held

Open P&L is an estimate only. Final realized profit or loss depends on the actual execution price, which may differ in fast-moving or illiquid markets.

Options Note: Open P&L for options is typically calculated using the mid-price between bid and ask: (Bid + Ask) ÷ 2

If either bid or ask is unavailable, alternate pricing such as the last trade price or prior close may be used.

How is P&L % calculated?

The standard formula is:

P&L % = Total Profit or Loss / Invested Amount × 100

Example: If you invested $1,000 and your profit is $200, your P&L % is:

$200 / $1000 × 100 = 20%

This means your investment gained 20%.

However, this simple method may not reflect the impact of deposits, withdrawals, or transfers. For a clearer view, performance reporting may also use:

  • Time-Weighted Returns (TWR): Neutralizes the impact of cash inflows and outflows, measuring pure investment performance.
  • Money-Weighted Returns (MWR): Accounts for both the size and timing of deposits and withdrawals, showing the investor’s actual return experience.

What is Realized P&L?

Realized P&L reflects gains or losses from completed transactions:

  • Options that Expire Worthless: The entire premium paid is recognized as a realized loss.
  • Expired Short Options: The premium collected remains as realized profit.
  • Exercised or Assigned Options: Premiums received or paid are factored into the adjusted cost basis of the underlying stock.
  • Corporate Actions: For example, in a cash merger, realized P&L equals the cash received minus your cost basis.

How is Cost Basis calculated?

Cost basis is the average purchase price of your position, adjusted for fees and certain corporate actions.

  • If you sell part of a position, the cost basis is averaged across remaining shares.
  • For options, cost basis is averaged across contracts with the same strike and expiration.