Technical Definition
Realized Profit and Loss
Realized Profit and Loss 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 gain or loss relative to the amount initially invested or committed.
Portfolio
A portfolio is the collection of assets, positions, and investments held by a person or organization.
PnL
PnL means profit and loss and represents the gain or loss associated with a position, trade, strategy, or portfolio.