What Does Floating P&L Mean in Forex?

Floating profit and loss, commonly written as floating P&L, refers to the unrealised gain or loss on positions that are currently open in your trading account. It is the running total of how much you would gain or lose if you were to close all of your open trades at the current market price.

Floating P&L is also known as unrealised P&L, open P&L, or paper P&L. Whatever name you use, the concept is the same: it is the live, fluctuating result of trades that have not yet been closed. Understanding floating P&L is important because it directly affects your account equity, your free margin, and your margin level, and therefore your capacity to hold existing positions and open new ones.

What Is Floating P&L?

Floating P&L is the difference between the price at which you opened a position and the current market price, multiplied by the size of the position, expressed in the account's base currency.

The word "floating" reflects the fact that the figure constantly changes as prices move. A long position with a 30-pip gain has a positive floating P&L; if the market moves against it and the position is now 15 pips offside, the floating P&L becomes negative. The figure can swing between positive and negative many times before the position is finally closed.

It only becomes realised, in other words locked in to your account balance, when the position is closed. Until then, it remains a paper figure that depends on where the market is right now.

Floating P&L vs Realised P&L

The distinction between floating and realised P&L is fundamental in trading.

Floating P&L belongs to trades that are still open. It is reflected in your equity but not in your balance. It can grow, shrink, or reverse direction depending on price action.

Realised P&L belongs to trades that have been closed. The result, whether profit or loss, is settled and added to or deducted from your account balance. Once realised, the figure no longer moves; it is a settled transaction.

Two trades with identical entry and exit points will produce different P&L outcomes if one is closed and the other left open. The closed trade contributes to realised P&L and updates the balance immediately. The open trade contributes to floating P&L and updates equity in real time, with the final result not locked in until the position is closed.

How Floating P&L Is Calculated

The general formula is:

Floating P&L = (Current price − Entry price) × Position size × Direction

Where direction is +1 for a long position and −1 for a short position. In practice, this is expressed more conveniently using pip movement and pip value:

Floating P&L = Pips gained or lost × Pip value per lot × Number of lots

For a USD-denominated account holding a standard lot of EURUSD, the pip value is USD 10 per pip per standard lot. A 25-pip gain on a 1.0 lot position produces a floating profit of USD 250. The same 25-pip move against the position produces a floating loss of USD 250.

For pairs not quoted in USD, the calculation requires a currency conversion. For example, on a JPY-quoted pair such as USDJPY, the raw pip value is denominated in JPY (1,000 yen per pip per standard lot) and must be converted into USD using the current USD/JPY rate. The same principle applies to cross pairs quoted in other currencies. The Pip Value Calculator handles these conversions automatically.

Floating P&L on its own typically reflects the price-based gain or loss. Swap charges accrued from holding a position past the daily rollover are usually displayed separately on the platform and added to or subtracted from the running figure as time passes. On accounts where commission is charged (Raw and Nano at TIOmarkets), the full commission is charged when the position is opened and covers both the open and the close of the trade, so it is already deducted from the balance at the moment of opening rather than sitting inside the floating figure.

Where to See Floating P&L in MT4 and MT5

In MetaTrader 4, floating P&L is visible in the Terminal window, accessed via the Terminal menu or by pressing Ctrl+T. The Trade tab lists each open position on a separate row, and the Profit column on the right of that row shows the floating P&L for that position at the current market price. The total of all open positions is summed at the bottom of the tab.

In MetaTrader 5, the equivalent location is the Toolbox window, also opened with Ctrl+T. The Trade tab in MT5 has a similar layout, with a Profit column showing the floating P&L per position and a total at the bottom.

At the bottom of the Trade tab, the platform also displays the account-level metrics that floating P&L feeds into: Balance, Equity, Margin, Free Margin, and Margin Level. These update in real time as prices move and as the floating P&L on each position changes.

Both MT4 and MT5 are available at TIOmarkets on desktop (MT4, MT5), web, and mobile. The account synchronises automatically across platforms, so the floating P&L visible on the mobile app reflects the same positions and prices as the desktop terminal.

How Floating P&L Affects Equity, Free Margin and Margin Level

Floating P&L is the link between balance and equity.

Balance is the settled cash value of the account, including realised profits and losses, deposits, withdrawals, swap settlements, and commissions. It only updates when a transaction settles.

Equity equals balance plus floating P&L. As the floating figure moves up or down, equity moves with it in real time, while balance remains static until something is realised.

Free margin is equity minus used margin. When floating P&L is positive, free margin grows above the level it would sit at if all positions were just opened. When floating P&L is negative, free margin shrinks.

Margin level is equity divided by used margin, expressed as a percentage. At TIOmarkets, the margin call level is 100% and the stop-out level is 30%, with a 40% stop-out applying to accounts on 1:2000 leverage. These levels are subject to change depending on market conditions and applicable regulatory requirements. Because margin level depends on equity, and equity depends on floating P&L, a large adverse swing in floating P&L can drag margin level down toward the stop-out threshold even though no trade has actually been closed.

This is the mechanical reason floating P&L matters in practice. The figure may be paper-based, but it has real consequences for what the account can do.

Worked Example: Floating P&L on an EURUSD Trade

The example below assumes a USD-denominated account at TIOmarkets.

Account balance: USD 5,000. Position: long 1.0 standard lot of EURUSD opened at 1.0850. Margin requirement on EURUSD is 1%. One standard lot is 100,000 units of the base currency, so the notional value is EUR 100,000. Used margin in USD is approximately 100,000 × 1.0850 × 1% = USD 1,085.

If price moves to 1.0875, that is a 25-pip gain in the trader's favour.

Pip value at 1.0 lot for EURUSD is USD 10 per pip. Floating P&L = 25 × USD 10 = USD +250.

The resulting account picture is:

Balance: USD 5,000 (unchanged, no trade closed). Equity: USD 5,000 + USD 250 = USD 5,250. Used margin: USD 1,085. Free margin: USD 5,250 − USD 1,085 = USD 4,165. Margin level: (USD 5,250 / USD 1,085) × 100 = 484%.

Now suppose price drops instead to 1.0750. That is a 100-pip move against the position.

Floating P&L = −100 × USD 10 = −USD 1,000.

Balance: USD 5,000 (still unchanged). Equity: USD 5,000 − USD 1,000 = USD 4,000. Used margin recalculates at the new price: 100,000 × 1.0750 × 1% = USD 1,075. Free margin: USD 4,000 − USD 1,075 = USD 2,925. Margin level: (USD 4,000 / USD 1,075) × 100 = 372%.

Margin level has dropped from 484% to 372% without a single trade being closed. The balance has not moved, but the account's risk profile has. If the floating loss kept growing, equity and margin level would continue to fall, eventually approaching the margin call and stop-out thresholds.

For non-USD accounts, the same logic applies but in the account's base currency. The Profit Calculator and the Margin Calculator can be used to estimate floating P&L scenarios and the resulting margin requirements before placing a trade.

Why Floating P&L Matters

Floating P&L matters because it determines what the account can do at any given moment, even though it has not been realised.

It influences position sizing. A trader running an existing position with a large floating profit has more free margin available, which expands the size of the next position that can be opened. A trader sitting on a floating loss has less room to manoeuvre, and the next position may need to be smaller, or may not be opened at all.

It influences emotional decision-making. Traders often respond differently to a floating loss than to an equivalent realised loss, sometimes holding losing positions in the hope that the market will reverse rather than closing and accepting the loss. Recognising that a floating loss is just as real, in terms of its effect on equity, free margin, and margin level, helps put unrealised positions in their proper context.

It influences risk management. A predefined stop-loss caps the maximum floating loss a trade can produce before being closed. Without a stop-loss, floating P&L can swing far further than initially planned, and the link between equity, margin level, and stop-out becomes the only safety net.

It influences settlement. Floating P&L is also the basis for understanding the impact of overnight swap charges, which accrue while a position is open, and for forecasting the realised result if the position is closed at the current price.

Trading at TIOmarkets

TIOmarkets offers four account types across MetaTrader 4 and MetaTrader 5, with platforms available on desktop, web, and mobile. The Standard account is created automatically on registration with a minimum deposit of $20 or currency equivalent. The Raw and VIP Black accounts are opened separately through the client area. The Nano account is MT5 only with a $20 minimum deposit, USD only. Hedging is supported on all accounts. A swap-free Islamic account is available; contact TIOmarkets for eligibility and instrument requirements. Copy trading is available on both MT4 and MT5.

Orders are executed at the best available market price, which may result in positive or negative slippage. Demo accounts often execute instantly and may not fully replicate live slippage conditions. Spreads are variable and are typically higher than minimum figures shown. Leverage on each instrument is subject to change depending on market conditions and applicable regulatory requirements. You can review the full list of account types and their individual specifications on the TIOmarkets accounts page.