Understanding Profit and Loss Graphs（理解损益图表）.pdfVIP

Understanding Profit and Loss Graphs The axis defined…  The Y axis, or the vertical, up/down axis, represents the profit or loss for the strategy.  Anything on the Y axis above the X axis represents a gain.  Anything on the Y axis below the X axis represents a loss. The X axis represents the price of the underlying (stock, index or whatever other investment we are analyzing). As we know, the prices of stocks and indices cannot be negative, thus the X axis (theoretically) ends at zero on the Y axis. One way to remember which axis is which is to note that t