What is Floating P L? Why is the floating P L inconsistent with the actual P L?

Floating profit and loss, also known as position profit and loss, refers to the potential profit and loss calculated based on the initial transaction price of the position contract and the settlement price of the day.

The unrealized profit or loss of an open position calculated at the settlement price of the current day.

i.e. theoretically money that has not yet fallen into the pocket.

Floating P&L = (Settlement price of the day Open position**) * Position size * Contract unit.

In layman's terms: book profit and loss.

Floating P&L is the difference between the position value and the original position value of the contract held by the trader at the settlement price of the day when the market is closed. Floating profit and loss is a type of unrealized profit or loss that is not generally recognized as investment income under the accounting focus income realization principle. However, due to the high risk of investment, in order to provide users of financial statements with decision-making information, it is necessary to disclose this to distinguish it from the realized profit and loss of investment profit and loss.

Classification of floating profit and loss: Floating profit and loss is divided into floating profit and loss of the day and accumulated floating profit and loss.

Under the daily debt-free settlement system, the concept of floating profit and loss is used for trading.

Cumulative floating profit and loss: refers to the accumulated profit and loss of ** contract from the opening of the position to the settlement date; The floating profit and loss of the day refers to the profit and loss incurred on a trading day during the holding period.

The calculation formula is as follows:

Floating profit and loss of the day = (settlement price of the current day - settlement price of the previous trading day) position volume.

The floating profit and loss on the day of opening a position shall be calculated based on the difference between the settlement price of the day and the opening price of the day.

Accumulated floating profit and loss = (sell transaction price - settlement price of the day) selling volume.

or = (Settlement price of the day - **transaction price) **Volume.

As a result of the above calculation, a positive number is a floating profit, and a negative number is a floating loss.

There are two reasons why the floating P&L and the actual P&L are inconsistent:

1. Differences in taxes and handling fees.

The actual profit and loss is compared to the floating profit and loss, taking into account the fees associated with the purchase.

The floating P&L is equal to (Sell Price - **Price) * Number of Shares, while the Actual P&L is equal to (Sell Hidden Price - ** Price) * Number of Shares - Total Transaction Fees.

2. The settlement cycle is not the same, take ** as an example, Wang BeiFloating P&L needs to be calculated on a daily basis, and the actual profit and loss is a period from ** to sellThe overall P&L amount for the period

Supplementary Materials:

in the Ministry of Finance. In the Interim Provisions on the Financial Management of Commodity Transactions, Cai Shang Zi [1997] No. 44, it is clearly stated that:

Floating profit and loss, also known as position profit and loss, refers to the potential profit and loss calculated based on the initial transaction price of the contract and the settlement price on the settlement date.

**The core of the settlement business is the daily market-to-market system, that is, the daily debt-free system.

Specifically, there are two aspects:

1) Calculate floating profit and loss. That is, the clearing institution calculates the floating profit and loss of the member's open position according to the settlement price of the day's trading, and determines the margin payable for the open position.

Amount. The calculation of floating profit and loss is: floating profit and loss (settlement price of the day to open a position**) position volume contract unit handling fee。If it is positive, it indicates a long floating profit or a short position.

Floating loss, that is, after the long position is opened, **** indicates the long floating profit, or after the short position is opened, **** indicates the short floating loss. If it is negative, it indicates a long floating loss or a short floating profit, that is, after the long position is opened, it indicates a long floating loss, or after the short position is opened, it indicates a short floating profit. If the margin is insufficient to maintain the open position, the clearing institution will notify the meeting to make up the difference before the market opens the next day, i.e., a margin call, otherwise the position will be liquidated.

In the event of a floating profit, the member cannot withdraw the profit unless the contract is closed in the future, turning the floating profit into an actual profit.

2) Calculate the actual profit and loss. The profit and loss realized from closing the position is called the actual profit and loss. **The vast majority of contracts in the transaction are closed by means of closing the position.

The calculation of the actual profit and loss of long positions is: profit and loss (closing price ** price) position volume contract unit handling fee.

The calculation of short profit and loss is: profit and loss (selling price, closing price), position volume, contract unit, and handling fee.

Floating profit and loss refers to the profit or loss on the book when the position is still open.

At this time, the volatility did not form an actual loss, it was still full of uncertainty, and when the investor closed the position, the profit and loss on the book was converted into the actual profit and loss. In real trading, floating profits and losses can have a psychological impact on investors, and some investors with large gambling properties always die when they lose money, or become more greedy when they make profits.

Floating profit and loss generally refers to the profit and loss of the position, the profit and loss of the position, and the profit and loss of the closing position. Also known as book profit and loss or floating profit and loss. The difference between the position value of the contract held by the trader at the settlement price of the day and the original position value at the end of the trading session.

The position profit and loss is an unrealized profit or loss, according to the ledger account.

The principle of income realisation, which is not usually recognized as investment income.

However, due to the greater risk of ** investment, in order to the financial statements.

of users provide decision-making information, and it is necessary to reveal this. Therefore, it can be reflected in the ** investment income account, or it can be reflected under ** in the second-level account position profit and loss to be different from the realized ** investment profit and loss closing profit and loss.

If the profit or loss of a position does not meet the conditions for recognition, it should be treated as a contingent liability.

and contingent assets, no accounting treatment is required, but only disclosure or non-disclosure is required in accordance with the relevant requirements. Regardless of whether the provision of "no new positions can be opened for position profits" is consistent with the spirit and essence of the implementation of the daily settlement system in the **Regulations and the **Exchange Administrative Measures, as far as its accounting treatment is concerned, due to the ** investor's margin.

The balance is adjusted with the change of **** and the continuous change of floating profit and loss, and there will be a difference between the initial investment margin and the adjusted margin, which needs to be "treated as a pending property loss and overvalue" according to the above provisions.

Set up a special account for accounting, which is not included in the profit or loss for the current period".

The difference between floating profit and loss, total profit and loss and realized profit and loss is mainly that floating profit and loss refers to the real-time calculation of profit and loss according to the stock price when the ticket is bought and not sold; The total profit and loss is the state of profit and loss that must be determined after the ticket is sold, that is, Lalu said that the total profit and loss will not change, and the floating profit and loss will change; The realized profit and loss, also known as the actual profit and loss, refers to the profit and loss of the amount in the account after each operation (buy, then sell), which is the profit and loss that has been realized after buying and selling.

Floating profit and loss: also known as position profit and loss, refers to the difference between the position value and the original position value of the contract held by the trader at the settlement price of the day when the market is closed. The position profit and loss is an unrealized profit or loss, according to the ledger account.

The principle of income realisation is usually not recognized as investment income.

Realized profit and loss: Realized profit and loss is to buy and sell.

After that, the actual profit and loss situation. If the cost price is 8 yuan per share, a total of 1,000 shares, share capital.

8,000 yuan, and now sells 900 shares at 5,400 yuan, and the stock price is 6 yuan. The loss per share was 2 yuan.

The handling method of the inconsistency between the liquid loss and the actual profit and loss of the floating profit and disturbance is as follows: the balance can be achieved through ** adjustment.

Compared with the floating profit and loss, the actual profit and loss should take into account the handling fee cost of purchasing ****. Floating P&L is equal to (Sell Price - Price) * Number of Shares, while Actual P&L is equal to (Sell Price - ** Price) * Number of Shares - Total Transaction Fee.

, refers to **when buying and selling on the **market**. ** has no value in itself, it is only a credential. The reason it has is that it can bring dividends to its holders.

income, so the purchase and sale of ** is actually a kind of certificate for receiving dividend income or **.

The par value is the profit distribution of the participating companies.

The level of dividends is a certain amount of share capital.

Ratio to the realized dividend, interest rate.

is the level of interest on liquid money capital.

**Volatility Stock price volatility refers to the change pattern of ****, which is manifested as a fluctuating state in which there is an opposite small trend movement in a general trend.