NET Profit

[Alpha322]

Hi
Can someone define what is Net Profit, is that what your PNL potential profit on a open trade is ??

[Euler]

Net profit would be your result after commission, or are you asking something else?

[MemphisFlash]

Jesus, if you don't know what net profit is, didn't you learn anything at school

[ShaunWhite]

Net is what's left of your gross PL after ALL costs, commission is just one of them. Then there's the electric bill, software subscriptions, pc upgrades, hols and sick time.... and biscuits.

[Alpha322]

Net profit would be your result after commission, or are you asking something else?

Example i have made a Trade on Favourite i use say lay £500 at 2.54 price goes £10 a tick to 2.74 = £100 Trade. i now want to lay some of that profit back into the market 33% of it.
The rule in drop down menu says percent of net profit, is the £100 the net profit ?? so position on field is 33% and Traded horse 67%

[jtrader]

Net profit would be your result after commission, or are you asking something else?

Example i have made a Trade on Favourite i use say lay £500 at 2.54 price goes £10 a tick to 2.74 = £100 Trade. i now want to lay some of that profit back into the market 33% of it.
The rule in drop down menu says percent of net profit, is the £100 the net profit ?? so position on field is 33% and Traded horse 67%

Where did you find in droping menue option 'percentage of net profit' ? I could see 'percentage of net stake' and 'net stake' only

Screenshot (2436).png

If you lay £500 @ 2.54 ,then you close with free bet £500 @ 2.74 that leaves profit £100 on selection and £0 on other selections.

You could SV as 33% of Profit/Loss on selection ant then could Lay @ 2.74 by 'Liability using SV Stake' ,but in that case you leave with £67 profit on selection and £18.97 profit on another selections.

If you use that SV to lay @ 2.74 by 'Stored Value Stake' then you leave £42.58 profit on selection and £33 profit on other selections.

[Crazyskier]

Net is what's left of your gross PL after ALL costs, commission is just one of them. Then there's the electric bill, software subscriptions, pc upgrades, hols and sick time.... and biscuits.

This post illustrates that 'net' or 'nett' in old Queen's English when applied to profit, is actually subjective and differs massively from person to person.

For example, many chimed in that it simply means after commission is deducted, but as Shaun rightly comments above, some people view net / nett as encompassing far more of your outlay, indeed I'd go as far as suggesting that even the potential earnings lost by the time you invest to achieve trading success on BF should be included if you wish to calculate a true net or nett profit.

To each, their own.

CS

[ShaunWhite]

the potential earnings lost by the time you invest to achieve trading success on BF should be included

Aka opportunity cost.


You reminded me of a post I did 8yrs ago.... I can't remember my breakfast but I remember 8 yrs ago.
I would change a couple of comments after the passage of time but most are still fairly perinant.

The other point I'd add now is the irregular income, not a cost but requires capital.

viewtopic.php?p=116975

[Kai]

Maybe OP is just asking whether net profit is the same as their open trade's potential profit? If so, definitely not

Can totally see how the terminology can trip people up, it's unrealistic to expect everyone to conform to the same language when we all come from different backgrounds

When I first started trading with a friend, we had our own made-up terms that best described what we were seeing at the time... which we gradually replaced over time with actual financial market terms as our understanding and eloquence grew etc

Jesus, if you don't know what net profit is, didn't you learn anything at school

Very easy not being a dickhead, you should try it sometime

[ShaunWhite]

Very easy not being a dickhead, you should try it sometime

some people don't get that everyone just knows different stuff. Some know what net is, or how to re-wire a house or fix their car, and some know how to tune static categoricals in their temporal fusion transformer for multi horizon price forecasting. Doesn't mean anyone is smarter than anyone else it's just what things you've needed to know about .

[Kai]

Very easy not being a dickhead, you should try it sometime

some people don't get that everyone just knows different stuff. Some know what net is, or how to re-wire a house or fix their car, and some know how to tune static categoricals in their temporal fusion transformer for multi horizon price forecasting. Doesn't mean anyone is smarter than anyone else it's just what things you've needed to know about .

Indeed

Surely the "Bet Angel for Newbies / Getting Started" section should be the one safe place to ask literally anything