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Unrealized P&L Definition

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

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What is Unrealized P&L?

It fluctuates continuously with market prices until the position is closed and the P&L becomes realized.

Unrealized P&L is reflected in a trading account's equity but not yet in its balance.

Example of Unrealized P&L

An open position currently showing a $150 gain, but not yet closed, has $150 of unrealized P&L.

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