Unrealized means the position is still open
Unrealized P&L changes with the venue's valuation price. It can reverse before you close and may be calculated from mark price rather than the latest trade.
Realized means exposure was closed
Closing all or part of a position converts the corresponding price result into realized P&L. Partial closes can leave a remaining position with an updated quantity and average entry treatment.
Gross P&L is not net P&L
Trading fees, funding, liquidation charges, and other venue adjustments affect the final account result. Review the account history rather than relying only on the price difference.
Reconcile P&L from fills and cash flows
Unrealized P&L changes with the provider’s valuation price while exposure remains open. Realized P&L depends on actual closing fills. Funding, rollover, trading fees, liquidation charges, and settlement adjustments can sit outside a simple entry-to-exit calculation.23
For a partial close, allocate the realized quantity and retain the provider’s updated average entry for the remainder. Do not infer final account profit from one position row when other cash flows or collateral-value changes affect equity.4
Worked partial-close example
A 10-unit long entered at $100 has $100 of gross unrealized gain when the valuation price is $110. If 4 units close at $109, roughly $36 becomes realized before costs and 6 units remain exposed. The open portion’s unrealized P&L continues to change from the provider’s retained average entry and valuation method.24
Account equity will not necessarily rise by exactly $36 at that moment if fees, funding, prior settlements, or collateral-price changes are recorded separately.2