I have several activity records which include several transaction types: buy, sell, short, cover, etc.

I understand the impact of buy and sell on the Unrealized, Daily and Realized P&L of a security or Portfolio.

However, how do you deal with a short position in a security? Is everything just in reverse (i.e. buy * -1)?


Lots of ways to do this. Below is a pretty simple example:

Side    Position (Shares)   Entry Price Current Price   Open PnL
Long    1000                100         90              -10,000
Short   -1000               100         90               10,000

You don't need the Side and Position if you are going to use -ve values for Short positions. I just put both in for your benefit. Having Short and a -ve Position size is redundant and/or a double negative. Using either one to adjust your PnL formula will work. I personally use -ve numbers for Short positions and don't use an actual Short label.


Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.