Realized P&L Definition

Realized profit and loss is the actual gain or loss from a position that has already been closed.

What is Realized P&L?

It differs from unrealized P&L, which applies to positions that remain open and can still change in value.

Realized P&L is reflected directly in an account's balance once a trade is closed.

Closing a trade with a $300 profit adds $300 of realized P&L to the trading account.

A rally is a sustained period of rising prices in an asset or market, often following a decline or period of stability.

Range trading is a strategy that involves buying near support and selling near resistance within a defined price range.

Rate of return is the gain or loss on an investment over a period of time, expressed as a percentage of the initial investment.