Trading glossary · practical definition

What is realized vs unrealized pnl?

Unrealized PnL belongs to an open position; realized PnL is locked when exposure is closed.

Term
Realized vs unrealized PnL
Category
Trading mechanics
Reading time
3 minutes
Reviewed
2026-08-26

Realized vs unrealized PnL in plain English

Unrealized PnL belongs to an open position; realized PnL is locked when exposure is closed.

Fees and funding can make realized account change differ from chart-only PnL.

Practical example

Closing half a position realizes half of the trade outcome while the rest remains exposed.

Common mistake

Ignoring costs when reconciling PnL.

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