The BPL full form in Share market is Booked Loss or Profit. It represents the loss or profit that result from complete trades. Trades that are sold and bought typically reflect in the BPL however trades that are purchased but not sold are recorded within the MTM.

Importance of booked profit or loss

In the market for shares book profit or loss is the result of gains or losses resulting from selling securities. Booked profits are the gains that is earned through selling the security for an increased price, while book loss is the reverse of this. The booked loss and profit influence the tax liabilities for the broker. Profits from booking will be subject to tax while losses are tax-free. BPL helps traders balance and manage their portfolio of investments and also assists investors to monitor how their investment portfolios perform.

Strategy for operation BPL:

Investors need to set the desired price for selling their securities so that they can record profits. They should make use of Stop loss orders that allows them to automatically make their investment securities available for sale. They must also check their portfolio to spot possibilities to make profits and limit losses.