Technical Definition

Unrealized Profit and Loss

Unrealized PnL is the profit or loss on an open position that has not yet been closed.

By Crypto University Editorial
PortfolioRealized PnL

✦ Key Insight

It changes constantly as market prices move.

✕ Common Misconceptions

Treating unrealized profits as guaranteed profits

Detailed Explanation

How It Works

Until a position is sold, gains or losses remain unrealized.

FAQs

Can unrealized profit disappear?
Yes. Market prices can reverse before you close the trade.

In Practice

“Bought ETH at $2,500. Current price $2,900. Profit is unrealized until sold.”

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