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The actual profit or loss from a trade after you've closed the position.
Definition
The actual profit or loss from a trade after you've closed the position. This is the money you actually made or lost, as opposed to unrealized gains on open positions. Realized PnL matters for tax reporting since most jurisdictions tax gains when they're realized, not while they're on paper.
Related Terms
The profit or loss on a position that you haven't closed yet.
The percentage gain or loss on an investment relative to its cost.
An order that automatically sells your position when price reaches a target level to lock in gains.
A period when smart money quietly buys up an asset before a major price move.
The average yearly return on an investment, calculated to account for compounding.
Profiting from price differences of the same asset across different markets.
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