Welcome to the PnL Explained Professionals Home Page!
New for August 2020
1) New Page: Option Pricing Models
2) New Page: Intro to CTRM Software CTRM = Commodities Trading & Risk Management
3) New Page: Intro to Volatilities
4) Started updating our look and feel to something more modern*.
a) Educate the world about PnL explained reporting (a.k.a. PnL Explain/PnL Attribution/P&L Explained/P&L Attribution/Profit and Loss Explained)
b) Provide a forum for PnL Explained Professionals to share information and help them meet their professional goals.
c) Provide credentials to professionals to help demonstrate that they have reached a minimum level of proficiency in PnL explained reporting.
Res Non Ipsa Loquitur
Profit and/or Loss (PnL) Explained also called P&L Attribution is a type of report commonly used by traders, especially derivatives (swaps and options) traders, that attributes or explains the daily fluctuation in the value of a portfolio of trades to the root causes of the changes. PnL is usually defined as value today minus value from prior day. PnL Explained is defined at a high level as
or in more detail:
* That includes, for example a font change from Calibri to Verdana. Sorry Calibri, we had some good times together, but I have moved on.
This website last updated August 2020