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Profit and Loss
P&L (Profit and Loss) measures financial gain or loss over a trading period or specific transaction.
In oil trading, P&L tracks results from physical trades, derivatives, and portfolio adjustments. Realized P&L accounts for closed positions; unrealized P&L reflects open exposure.
Monitoring P&L helps manage risk, evaluate strategy performance, and meet regulatory reporting requirements.
Effective P&L analysis informs decision-making and capital allocation.