moomoo CA Help Center-Profit & Loss (P/L)
English
Back
• Investment Choices
• Features
• Pricing
• Support
• Promotions
• Insights
• Quotes
• News
• Moo Community
• Learn
• English
• 中文繁體
• 中文简体
• Dark
• Light
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 FeesNote: 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 Cost Current Price Quantity Position P/L Unrealized P/L Realized P/L 200.05 205 200 990 990 0

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 Cost Current Price Quantity Position P/L Unrealized P/L Realized P/L 200.05 215 100 2480 1495 985

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 Cost Current Price Quantity Position P/L Unrealized P/L Realized P/L 202.575 215 200 3470 2485 985