How is Profit and Loss (P&L) calculated?
Profit and Loss, often abbreviated as P&L, is a key metric that reflects how much money you’ve made on your investments.
P&L is calculated by taking into account several components, including realised and unrealised gains. Here's the formula:
P&L = Current Investment Value + Value of Withdrawals - Value of Deposits
Current Investment Value represents the sum of your current investment positions. For more detailed information on this, please refer to [here].
Distributions Made signifies the cash value you've received when withdrawals are processed.
Value of Deposits is the cash value of deposits made into your investment account.
Does foreign exchange impact my P&L on Floww?
To address the impact of foreign exchange rates, our platform maintains up-to-date spot exchange rates for over 160 currencies. This allows us to seamlessly convert investments made in foreign currencies into your reporting currency using the current spot rate, which is reflected in the P&L of your account.