PnL (profit and loss) and ROI are the two metrics used to judge trading results: the first shows the outcome in money, the second as a percentage of the capital committed.
Realised and unrealised PnL
| Realised PnL | Unrealised PnL | |
|---|---|---|
| When it arises | when a position is closed | while a position is open |
| What it reflects | the actual outcome of the trade | the current result on an open position |
| How it behaves | fixed and no longer changes | moves with the market price |
| What it accounts for | the difference between entry and exit prices, opening and closing commissions, funding | the current price difference |
Unrealised PnL is included in the account balance, which means it affects the daily and maximum drawdown at the moment it arises rather than when the position is closed. This is covered on the Challenge & Trading Rules page.
ROI
ROI measures the return relative to the capital committed to a position.
ROI = (final value − initial investment) ÷ initial investment × 100%
- Initial investment — the capital allocated to opening the position, that is, the collateral.
- Final value — includes both realised and unrealised results.
Worked example
Collateral of $1,000 at x5 leverage gives a position notional of $5,000. A long on ETH is opened at $2,000.
The price reaches $2,200, a rise of 10%. On a $5,000 notional that is a profit of $500.
ROI = $500 ÷ $1,000 × 100% = 50%.
The calculation excludes commissions, spread and funding — on a real trade they reduce the result.
How fees affect the result
| Cost | When it arises | What it affects |
|---|---|---|
| Opening and closing commission | on entering and exiting a position | directly reduces the realised PnL of every trade |
| Funding | every 8 hours while a position is open | charged from the margin and reduces the final result |
| Spread | at the moment a position opens | creates an immediate unrealised loss, since entry happens at a price worse than the mid |