What is defined as the amount realized from a transaction, minus the transaction fees, minus the price of entry?

The amount realized from a transaction, minus the transaction fees and the price of entry, accurately defines net profit. This figure represents the actual gain after accounting for the costs associated with entering and executing a transaction. It provides a clearer picture of the profitability of a trade by considering both the costs incurred and the revenue generated.

In the context of trading, net profit is essential for evaluating performance, as it reflects the true profit earned from trading activities. While gross profit might refer to revenue before costs, net profit incorporates deductions, making it a more relevant measure for traders assessing their successes or losses. Total revenue typically indicates the total income generated without accounting for any expenses, and operating income refers to income derived from business operations before deducting taxes and interest, which does not apply specifically to trading transactions.