Unrealized PnL and Realized PnL

In futures trading, PnL is generally categorized into Unrealized PnL and Realized PnL.

1. What Is Unrealized PnL?

Unrealized PnL refers to the floating profit or loss of a position that is still open. It changes in real time as market prices move.

For example:

• Entry Price: 80,000 USDT
• Current Market Price: 82,000 USDT

In this case, the position would show an unrealized gain. However, since the position has not been closed, the profit is still considered Unrealized PnL.

If the market price later drops to 79,000 USDT, that gain could turn into a loss.

2. What Is Realized PnL?

Realized PnL refers to the profit or loss confirmed after a position has been closed.

For example:

• Entry Price: 80,000 USDT
• Exit Price: 82,000 USDT

Once the position is closed, the corresponding Unrealized PnL becomes Realized PnL.

Simply put:

Unrealized PnL changes in real time with market movements and does not reflect your final profit or loss. Only after a position is closed does the PnL become Realized PnL, representing the actual profit or loss from the trade.