Profit and Loss Analysis Entry
1. Click on "Assets" - "All Functions," and select "P/L Analysis."
2. On the Profit and Loss Analysis page, you can review your earnings, perform a comprehensive review of trading profits and losses, and access key features such as cumulative profit and loss amounts, cumulative return rates, performance relative to market indices, daily profit details, individual stock profit details, and asset changes.
Explanation of Profit and Loss Fields
1. Cumulative Profit and Loss
Cumulative profit and loss refers to the total profit and loss in the account caused by trading or corporate actions. It is the sum of daily profits and losses during the period.
2. Position Profit and Loss
Position profit and loss, also known as "floating profit and loss," records the total profit and loss from the opening position to the current date (excluding transaction fees).
3. Daily Profit and Loss
Daily profit and loss refers to the cumulative profit and loss from the closing price of the previous trading day to the current trading session.
Return Rate Calculation Methods
Currently, there are two calculation methods for return rates:
1. Simple Weighted Return = Cumulative Return = Cumulative Profit / (Initial Total Assets + Net Inflows during the period)
This method considers all net inflows, such as deposits, withdrawals, and stock transfers during the statistical period, as adjustments to initial assets, combining them into the initial asset cost.
Advantages: Fast calculation, simple and easy to understand.
Disadvantages: Relatively less accurate compared to other methods, especially when there are significant withdrawals or a long calculation period, which may distort or exaggerate the return rate, even resulting in negative values, making it less reliable.
2. Time-Weighted Return Rate = [ 1 * (1 + Day 1 Daily Return Rate) * (1 + Day 2 Daily Return Rate) … * (1 + Day n Daily Return Rate) − 1 ] * 100%
Daily Return Rate = Daily Profit and Loss / (Previous Day Closing Assets + Net Inflows of the Day)
Net inflows include deposits, withdrawals, and stock transfers. This method divides the entire period into daily segments, calculates the return rate for each day, and aggregates them into the cumulative return rate for the period.
Advantages: Dividing the period into daily segments minimizes the impact of net inflows on the return rate.
Disadvantages: Does not account for investment amounts and treats daily return rates equally. If there are frequent large deposits or withdrawals (relative to account net value), it may result in a mismatch between return amounts and return rate signs, making the return rate unreliable.
Common Issues with Profit and Loss
1. Position Profit and Loss Doesn’t Match Daily Profit and Loss
Position profit and loss is the cumulative amount calculated from the opening position, and it is related to the cost price.
Daily profit and loss represent the price difference between the market value of stocks today and yesterday, and it is related to the previous closing price.
2. Profit and Loss Rankings Don’t Match Individual Stock Cumulative Profits
The update frequency of the two statistics differs, which can cause discrepancies: profit and loss rankings are offline data updated daily, while individual stock profit details are real-time data updated continuously.