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  1. Home
  2. /Glossary
  3. /Unrealized PnL
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trading

Unrealized PnL

The profit or loss on a position that you haven't closed yet.

Definition

The profit or loss on a position that you haven't closed yet. It's a paper gain or loss based on current market prices. Unrealized PnL only becomes real when you actually sell or close the position. In leveraged trading, unrealized losses that hit your margin threshold trigger liquidation.

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Related Terms

ROI (Return on Investment)

The percentage gain or loss on an investment relative to its cost.

Liquidation

When a borrower's collateral is forcibly sold because their position became too risky.

Margin

Borrowed money used to increase trading position size.

Accumulation Phase

A period when smart money quietly buys up an asset before a major price move.

Annualized Return

The average yearly return on an investment, calculated to account for compounding.

Arbitrage

Profiting from price differences of the same asset across different markets.

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