Guide to Understanding Portfolio Total and Profit Total
Guide to Understanding Portfolio Total and Profit Total
On the platform, when you click on the “Portfolio” tab, you will see your account’s “Portfolio Total” and “Profit Total.” These numbers indicate potential gains or losses from trades you have not yet closed. Let’s break down what they mean.
● What is the Portfolio Total?
Portfolio Total refers to the sum of your initial investment capital and the cumulative profits or losses from all positions. It represents the total value of your investments once all trades have been closed, excluding any commissions deducted.
● What is the Profit Total And Profit For Today?
Profit Total refers to the net profit or loss of your current open trades, after accounting for commissions. Profit For Today refers to the net profit or loss for the current trading day. The profit total will represent the amount of money you would gain or lose if you were to close all your open positions at that moment.
● If the value is positive (green), you have a floating profit.
● If the value is negative (red), you have a floating loss.
Example of a Profit Total:
● You bought 100 lots of Blue Label Telecoms (BLU) at R3.98 = R398
● The current price is R5.09
● Your commission is 0.1% for JSE shares (0.3% for US shares )
The Profit Total is calculated as: Entry Position Size = Lots × Entry Price
Entry Position Size = 100 × 3.98 = R398
Commission Rands = Position Size × (Commission/100)
Commission Rands = R398 × (0.1/100) = R0.39
Profit Total = (Lots × Current Price) - Entry Position Price - Commission Rand
Profit Total = (100 × R5.09) - R398 - R0.39 = + R110.61
Portfolio Total = Profit Total + Entry Position Size
Portfolio Total = R110.61 + R398 = R508.61
● This means your Profit Total will be + R110.61 because the price moved in your direction.
● This means you have a Portfolio Total of R508.61.
Profit Total is not guaranteed until your position is closed, meaning that if the market moves against you, your gains can quickly turn into losses. Always remember, profit isn’t real until it’s realised.
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