Trading glossaryReviewed 16 July 2026
Definition
Unrealized P&L is the estimated gain or loss on open exposure using a current valuation price before the position is closed or settled.
In market context
The figure changes with the mark price and may not include every fee, financing charge, tax effect, or closing cost. It becomes realized only when the relevant quantity is closed or otherwise settled, often at a price different from the displayed mark. Unrealized losses still affect account equity and margin, so calling them unrealized does not mean they have no operational consequence.
Risk context
An unrealized gain can disappear before execution, while an unrealized loss can trigger liquidation before the user chooses to close.
Source
Use the primary source for fuller regulatory or market context.