What is a good example of a floating PNL loss?

That was very oversimplified - but here's an example. Let's say your grid profits are steady at about 20 USDT/day and your floating PNL loss at the bottom of your range is -200 USDT.

What does PNL mean in trading?

PnL stands for profit and loss, and it can be either realized or unrealized. It can be used to describe the change in the value of a trader’s positions. When you have open positions, your PnL is unrealized, meaning it’s still changing in response to market moves. When you close your positions, the unrealized PnL becomes realized PnL.

What is a floating P&L?

A floating P&L is also called unrealized, unrecorded, or undecided profit or loss. Unrealized P&L is also called a paper profit or loss because the actual gain or loss cannot be defined until the position is closed. When a trader opens a trade on day 1 and closes the trade on day 5 for $100 profit, this is called a realized profit.

When a PNL is unrealized?

When you have open positions, your PnL is unrealized, meaning it’s still changing in response to market moves. When you close your positions, the unrealized PnL becomes realized PnL. What is a Realized PnL?