Field Guide to Trading Terms

Realized Pnl vs Unrealized Pnl


Look-alike pair

Full entries: .

Realized PnL is profit or loss that has already been locked in by closing a position, while Unrealized PnL is the paper profit or loss on a position that is still open. The single difference that matters: realized PnL is final and no longer moves with the market, whereas unrealized PnL changes with every price tick until the position is closed.

Side by side

Realized PnlUnrealized Pnl
Position statusThe position has been closed.The position remains open.
CertaintyFinal and fixed once the closing trade is executed.Provisional; it can rise, fall or reverse at any time.
Effect on accountSettled into the account balance, subject to the broker's settlement timing.Shown as an open-position adjustment; it does not settle until the position is closed.
Tax treatmentGenerally the figure used for reporting taxable gains or losses, though the exact rules vary by country and instrument.Generally not taxable because no disposal has occurred, though some jurisdictions and instruments differ.
Field markAppears in a closed-positions, trade-history or realized-PnL report.Appears in an open-positions or portfolio screen, often labelled 'unrealized PnL' or 'open PnL'.
Calculation basisEntry price versus exit price, multiplied by size and adjusted for fees and funding where applicable.Entry price versus current market price, multiplied by size and adjusted for fees and funding where applicable.

Which word to use

Use realized PnL when referring to a closed trade or a completed reporting period, and unrealized PnL when referring to the current mark-to-market value of a position that is still open.