Floating P/L
Trading MechanicsThe unrealized profit or loss on open positions based on current market prices. Floating P/L changes with every price tick until the position is closed.
What Is Floating P/L?
Floating P/L (profit/loss) is the unrealized gain or loss on your currently open positions, calculated using the current market price. If you bought EUR/USD at 1.0850 and the current price is 1.0880, your floating profit is 30 Pips (approximately $300 for a standard Lot). Floating P/L updates continuously as prices change.
Floating P/L vs. Realized P/L
Floating P/L only becomes Realized P/L when you close the position. Until then, it can increase or decrease. A position showing +$500 in floating profit could end up at -$200 if the market reverses. This is why Stop-Loss orders and Take-Profit orders are important: they convert favorable floating P/L into realized profit before it can disappear.
Impact on Account Equity
Floating P/L directly affects your Account Equity. Equity = Account Balance + Floating P/L. Positive floating P/L increases your equity (and Free Margin), while negative floating P/L decreases it. Large negative floating P/L can push your Margin Level toward the stop-out threshold. Use our Profit/Loss Calculator to estimate potential P/L before entering trades.
Related Terms
Realized P/L
The actual profit or loss locked in when a position is closed. Realized P/L is added to or deducted from your account balance.
Account Equity
The real-time value of your account including open positions. Equity = Account Balance + Floating P/L. Equity determines your margin level and available margin.
Drawdown
The decline in an account's value from its peak to its lowest point before recovering. Drawdown is measured as a percentage and is one of the most important metrics for evaluating trading performance.
Account Balance
The total amount of money in your trading account from deposits, withdrawals, and realized (closed) trades. Does not include floating profit or loss.