What is Realized vs. Unrealized P&L?
Quick answer
Realized profit and loss is the gain or loss on positions you have actually closed; unrealized P&L is the paper gain or loss on positions still open, which changes with the market until you close them. The distinction matters because unrealized gains are not locked in and can disappear, and win rate is usually measured on realized, closed trades.
Profit and loss comes in two forms, and confusing them is a common mistake. What you have actually banked is different from what you are up on paper, and only one of them is real until you act.
The difference
Realized P&L is the result of positions you have closed: the gain or loss is locked in and reflected in your cash balance. Unrealized P&L is the gain or loss on positions still open, which fluctuates with the market moment to moment and is not locked in. An unrealized gain can grow, shrink, or turn into a loss before you close the position, so it is best thought of as provisional.
Why it matters in copy trading
When you evaluate a trader, a broker-verified track record is usually built on realized, closed trades, which is why it is trustworthy evidence: it reflects results that actually happened, not paper gains that might vanish. Being clear about the difference also helps you read your own account honestly, since a large unrealized gain is not money in hand until the position is closed.
Frequently asked questions
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