Unrealized P/L (unrealized profit/loss) represents the current profit or loss of an open market position.
It is an estimate of how much you could gain or lose if you closed that position right now.
How does it work?
If your open position goes in the right direction, you'll see an unrealized profit.
If it goes in the opposite direction, you'll see an unrealized loss.
But nothing is confirmed until you close the trade.
Example
Imagine you buy shares of a company at £100 and they're currently at £110:
✅ Your unrealized gain is £10
❌ If they drop to £90, your unrealized loss would be £10
⚠️ Important:
That profit or loss is only "realized" when you close the position.
What does the Unrealized P/L include?
In addition to the asset's price movement, the calculation also includes:
Entry and exit fees
Transaction costs associated with the trade
This provides a more accurate view of your potential profit or loss.
Why is it important?
The Unrealized P/L:
🔹 Directly affects your equity
🔹 Influences the margin available to open new trades
🔹 It's useful for evaluating whether to close or maintain an open position
🔹 Reflects your current risk exposure