Profit and Loss (P&L)
A measure of the financial performance of a business or trading activity, calculated as revenue minus expenses over a specific period. The final figure shows whether the activity generated a profit or incurred a loss.
Related terms
Profit
The revenue earned from a business activity or transaction after subtracting related expenses. The most common types are gross, operating and net profit, and profitability is a crucial indicator of business health for analysts.
Read full definitionRealised Profit/Loss
The gain or loss recognised when an investment is actually sold for a higher or lower price than was paid. Buying 1,000 shares at $5 and selling at $8 realises a $3,000 profit, and only at that point does it become liable for capital gains tax.
Read full definitionRunning Profit/Loss
The amount you currently stand to gain or lose if you closed your open trades. Platforms typically show a running profit in green and a running loss in red.
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Working Capital
The cash a business has tied up in day-to-day operations, broadly its current assets minus current liabilities. Healthy working capital lets a company pay suppliers and staff while waiting on customer payments.
Read full definitionEmerging Markets
Economies that are developing toward advanced-market status, often offering higher growth alongside greater currency, political and liquidity risk. Trading with them frequently calls for tailored FX and payment solutions.
Read full definitionAnnual General Meeting (AGM)
A formal, legally mandated gathering where a company’s shareholders meet with the board of directors and executives once a year to discuss financial performance and strategic direction. Publicly listed companies must hold AGMs to comply with corporate governance laws, while rules for private companies vary by jurisdiction.
Read full definitionAsset
An economic resource that individuals, companies and other organisations can own or control to generate profit or future benefit. In FX the term frequently refers to a currency or currency pair, and assets also underpin the pricing of derivative products such as CFDs and options.
Read full definitionBasis Point (bps)
A unit of measurement equal to 1/100th of 1%, or 0.01%, pronounced ‘bips’. Basis points are commonly used to describe small movements in interest rates, bond yields and exchange rates.
Read full definitionCapital Gains
The profit earned from selling an asset, such as stocks, bonds or real estate, for more than its purchase price. Capital gains are taxable and classified as short-term or long-term depending on the holding period.
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