Technical Definition

Realized Profit and Loss

Realized Profit and Loss (PnL) is the profit or loss from trades that have already been closed.

By Crypto University Editorial
PnLROIPortfolio

✦ Key Insight

It reflects actual performance rather than unrealized gains.

✕ Common Misconceptions

Confusing realized and unrealized PnL

Detailed Explanation

How It Works

Profit becomes realized only after closing the position.

FAQs

Is realized PnL taxable?
Often yes, depending on local tax laws.

In Practice

“Bought BTC at $90,000. Sold at $100,000. Realized profit = $10,000.”

Dig Deeper

ROI

ROI, or Return on Investment, measures how much profit or loss an investment generates relative to the original amount invested.

Portfolio

The overall view of all your holdings, balances, and current values across spot, futures, and other wallets.