Moomoo CA Help Center-Profit & Loss (P/L)
English
Back
Log in to access Online Inquiry
Back to the Top

Profit & Loss (P/L)

The profit and loss of open positions is shown as the total unrealized P/L and realized P/L and is calculated using the position's sell price and average cost.

  • Unrealized P/L: Refers to the profit or loss on an open position if it were closed at the current market price.

  • Realized P/L: Refers to the actual profit or loss that is made when shares are sold or a position is closed.

  • Transactions Fees: All fees related to buying or selling stock, or maintenance and storage fees.

Definition

Formula

Unrealized Profit & Loss (P/L)

Unrealized P/L = (Current Price – Average Cost) * Total Quantity of Shares

Realized Profit & Loss (P/L)

Realized P/L = (Previous Realized P/L) + ((Sell Price – Average Cost) * Sell Qty) – Transaction Fees

Note: If there is no previous realized P/L, the amount is 0

Profit & Loss (P/L)

P/L = Unrealized P/L + Realized P/L

 

Example 1: Opening a position

Before the transaction day (Day T), you held no position in Alibaba (BABA). On Day T, you bought 200 shares of BABA at $200 per share with $10 in transaction fees, and the current closing price was $205.

Then the average cost of the opened position is as follows:

Average Cost = ((Previous Average Cost * Previous Qty) + (Purchase Price * Purchase Qty) + Transaction Fees) / Total Qty

= (($200 * 200) + $10) / 200

= $200.05

Average CostCurrent PriceQuantityPosition P/LUnrealized P/LRealized P/L
200.052052009909900

 

Example 1 (Continued): Selling some shares

On the day after the transaction day (Day T+1), you sold 100 shares at $210 per share with $10 in transaction fees, and the new current closing price was $215.

The average cost remains the same as no new shares were purchased. However, the profit and loss of open positions is updated:

Average Cost = $200.05

Realized P/L = (($210 – $200.05) * 100) – $10 = $985

Average CostCurrent PriceQuantityPosition P/LUnrealized P/LRealized P/L
200.0521510024801495985

 

Example 1 (Continued): Buying more shares

Five days after the transaction day (Day T+5), you bought another 100 shares at $205 per share with $10 in transaction fees, and the new current closing price was $215.

The average cost is updated based on the purchase of more shares at the new purchase price:

Average Cost = ((Previous Average Cost * Previous Qty) + (Purchase Price * Purchase Qty) + Transaction Fees) / Total Qty

Average Cost = (($200.05 * 100) + ($205 * 100) + $10) / 200 = $202.575

Average CostCurrent PriceQuantityPosition P/LUnrealized P/LRealized P/L
202.57521520034702485985