Profit and Loss (P&L) shows how your position is performing.
As market prices change, your P&L updates in real time.
Profit
If the market moves in the direction you predicted, your position earns a profit.
For example:
You open a Long position.
The asset price increases.
Your P&L becomes positive.
Likewise:
You open a Short position.
The asset price decreases.
Your P&L becomes positive.
Loss
If the market moves against your prediction, your position records a loss.
For example:
You open a Long position.
The market falls.
or
You open a Short position.
The market rises.
In both cases, your P&L becomes negative.
What Affects My P&L?
Your P&L is influenced by:
Market price movements
Position size
Leverage
Whether your position is Long or Short
Realised vs Unrealised P&L
While your position remains open, your P&L is unrealised.
Once you close the position, it becomes realised.