Forex glossary
Floating P/L
Documentation context: Platform fields and account rules determine the result currency and the treatment of commission or financing.
The current valuation of profit or loss on positions that remain open. It does not promise a closing price; fee treatment and the result currency depend on the account fields and provider's rules.
Illustrative example
How does it work in practice?
Assume a hypothetical account has balance 1,000 USD and floating P/L −30 USD, with no other components. Equity is 970 USD; the −30 USD remains a current valuation until the position closes.
One account, four different figures
Valuation, closed P/L and charges
Fictional tariff: 3 USD per lot per side, plus three financing credits of +1 USD per lot each. A 0.20-lot position closes with +20 USD of price P/L.
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| Term | What it describes | Shared example |
|---|---|---|
| Floating P/L | Valuation of a position still open; it does not confirm a future exit price. | A +5 USD reading before closure remains unrealized. |
| Realized P/L | P/L of the closed portion, with separately assigned charges and credits. | 20 − 1.20 + 0.60 = 19.40 USD net for the closed position. |
| Commission | A fill-related fee; this model charges both opening and closing. | 3 × 0.20 × 2 = 1.20 USD total commission. |
| swap (overnight charge) | Financing on a carried position; it can be a debit or credit. | +1 × 0.20 × 3 = +0.60 USD; three applications, not an assumed calendar rule. |
Takeaway: Separate open valuation from closed results. Signs and fee bases are inputs to establish, rather than fixed features of the market.
Change an assumption, see the result
What changes if…?
Change floating P/L while holding balance fixed. Observe equity, remembering that a valuation does not confirm a future fill.
Model: equity = balance + open P/L; free margin = equity − margin. No credit, fees or other blocks. The stop-out threshold is hypothetical; the actual formula and action depend on the provider’s terms.
Check your understanding
Calculate open valuation using the correct quote and separate it from a balance booking.
Show the answer and explanation
Floating P/L is −0.30 USD; balance remains 1,000 USD.
(1.0997 − 1.1000) × 1,000 = −0.30 USD. This open valuation gives equity of 999.70 USD without changing balance.
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Related terms
Sources and documentation
- MetaTrader 5: executing trades
Execution modes, requotes, position handling and local trailing on this platform.
Document read:
The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.