What is the "Open P and L (Profit And Loss)?"
The Open P&L is the benefit or loss of your situation at the current market cost. As the market cost of your position (for example stock, alternative, Forex, or Cryptocurrency) changes, your Open P&L will change. It isn't abnormal that your Open P&L can change by a few hundred or even a huge number of dollars for the duration of the day.
Here's a model:
Suppose you purchased a stock for $100.
The current cost of the stock is $105.
This implies you have an "Open Profit" of $5.
In the event that the cost of the stocks drops to $98, your "Open P&L" will be - $2.
Why do you need the "Open P&L?"
The Open P&L gives you a fast diagram that estimates your present vacant situations in your portfolio.
You will quickly see whether your present positions are bringing in your cash or whether they are losing cash.
The Open P&L is exceptionally deceptive because as long as the exchange is open, it will change.
Just when you close an exchange you will know how much cash you have made or have lost.
Would it be a good idea for you to focus on the Open P&L?
Let me clarify it along these lines:
Both of my children are mariners.
Here's the means by which a cruising regatta works:
A regatta is generally 2-4 days, and every day there are a few races.
Ordinarily, there are 3-5 races for every day. So this implies a few regattas have 6 races, while others can have 10-12 races.
The victor of the regatta is the mariner with the least score.
Model: If you have a 1 – 1 – 1 – 1, which implies that you won four races, you have a score of 4.
So while a regatta is going on, and the mariners are finishing races, the score changes ALL THE TIME!
At this moment, my child Julius is contending at The Chubb U.S. Junior Championship.
As I am composing this, they finished 4 out of 9-10 races.
What's more, at this moment, Julius and his captain Lucy are in sixth spot.
Yet, this will change!
Before the regatta’s finishing race, they may climb to third place…
… or they could drop to tenth spot.
The sky's the limit!
Obviously, it is FUN watching the outcomes all day long.
But even if you arrive at the last race, you will know the conclusive outcome.
It resembles exchanging:
While you have a vacant position, you can watch the "Open Profit and Loss" all day long.
However, it doesn't make a difference whether you watch it or don't.
Just when you CLOSE the exchange, you will know how much cash you have made or have lost.
Synopsis
If you are watching the Open P&L while you are in an exchange, watching will make you insane.
I have been in exchanges that have been losing at the beginning. Afterward, they rose, giving me an option to leave them with a benefit.
Long story short:
Try not to commend "open benefits" and don't get agitated about "open misfortunes" since exchanges can pivot rapidly.
Being #6 out of 20 pontoons in The Chubb U.S. The Junior Championship is a serious deal.
Julius and Lucy are cruising against the best mariners in the country.
Today, there will be 3-4 more races.
Also, tomorrow, there will be 2-3 more.
Looking at the scores during the regatta is like looking at the "Open P&L" of your exchanges:
This is fun and engaging, yet this doesn't enlighten you about the outcome.
Expectation makes all the difference