Floating Profit/Loss

Floating profit (or floating loss) is the unrealized gain or loss on your currently open positions. It's "floating" because it changes with every price tick and only becomes real — realized — when you close the trade. Your floating P&L plus your account balance equals your equity.

Watching floating profit can be emotionally challenging. A trade might be up $500 one hour and $200 the next. This fluctuation is normal, but it triggers the urge to either take profit too early (fear of giving it back) or hold losers too long (hoping they'll recover). Having a trading plan with clear exit rules helps manage these emotional responses.

Floating P&L also has practical implications for your margin. Even though you haven't closed the trade, a large floating loss reduces your equity and therefore your available margin. If multiple trades go against you simultaneously, the combined floating losses can trigger a margin call even if no individual trade looks catastrophic.