What is the full form of BPL in the Share Market?
The BPL full form in the share market is Booked Profit or Loss. It corresponds to the profit and loss that is contributed by the completed trades. Trades that are bought and sold are generally reflected in the BPL, whereas trades that are bought and not sold are reflected in the MTM.
Importance of Booked profit or loss:
In the share market, booked profit or loss corresponds to the realization of losses or gains from the selling of securities. Booked profit is the gain obtained by selling the security at a higher price and booked loss is the opposite of this. Booked profit and losses affect the tax liability of the trader. Booking profits will incur taxes and losses will reduce taxes. BPL helps traders to balance and manage their investment portfolio and helps investors to track the performance of their investments.
Strategy to operate BPL:
Investors should set the target prices for selling their securities in order to book profits. They can make use of the stop loss order to automatically sell their securities. They should also regularly review their portfolio to identify potential opportunities to book profits and mitigate losses.