> For the complete documentation index, see [llms.txt](https://docs.yellow.pro/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.yellow.pro/perpetual-trading/pnl.md).

# Understanding PnL

**PnL** (Profit and Loss) measures how much you've gained or lost on a position. In perpetual trading there are two types: **Unrealized** and **Realized**.

![Unrealized and realized PnL shown on a position](/files/znq2NPPhdKcCLpk0Yt0j)

## Unrealized PnL (uPnL)

The current gain or loss on an **open** position. It updates in real time as the market moves and affects your account equity and liquidation risk — but isn't locked in until you close.

* **Long:** `uPnL = (Current Mark Price − Entry Price) × Position Quantity`
* **Short:** `uPnL = (Entry Price − Current Mark Price) × Position Quantity`

> **Long example:** entry 2,000, mark 2,200, size 1 ETH → `(2,200 − 2,000) × 1 = +200 USDT`. **Short example:** entry 2,000, mark 1,800, size 1 ETH → `(2,000 − 1,800) × 1 = +200 USDT`.

{% hint style="info" %}
Yellow\.pro uses the **Mark Price** (not the last traded price) to calculate uPnL, which protects against price manipulation. See [Liquidation & Mark Price](/perpetual-trading/risk-and-liquidation/liquidation-and-mark-price.md).
{% endhint %}

## Realized PnL

The profit or loss **locked in** when you close a position fully or partially. Once realized, it becomes part of your balance and no longer changes with the market. Triggered by closing a position or by liquidation. Trading fees are deducted from realized PnL, so your net may be slightly less than the gross calculation.

## PnL and Your Account Balance

| Component         | What it includes                      |
| ----------------- | ------------------------------------- |
| Total Balance     | All funds + unrealized PnL            |
| Available Balance | Funds not committed to open positions |
| Unrealized PnL    | Changes constantly with the market    |
| Realized PnL      | Fixed after a position is closed      |

If your unrealized PnL is negative, your Total Balance appears lower than your deposited funds — this is normal; the loss is only confirmed when you close.

<details>

<summary>My position shows a profit but my available balance is low — why?</summary>

Open positions tie up allocated margin and any open orders lock funds, reducing available balance. Unrealized PnL does adjust available balance (profit raises it, loss lowers it), but the collateral keeping positions open isn't free to use until you reduce or close them.

</details>

## Related Articles

* [Long, Short & Hedge Mode](/perpetual-trading/long-short-hedge-mode.md)
* [Liquidation & Mark Price](/perpetual-trading/risk-and-liquidation/liquidation-and-mark-price.md)
* [Position Management](/perpetual-trading/position-management.md)