Unrealized P&L

What is Unrealized P&L (Profit and Loss) in Trading?

Unrealized P&L, also written as unrealized profit and loss or unrealized pnl, is the running profit or loss on your open CFD positions. It’s “unrealized” because you haven’t closed the trade yet. Once you close it (fully or partially), it becomes realized P&L.

Unrealized Profit and Loss:

• Shows how your open trades are doing right now.
• Affects your equity and available margin, even though it’s not locked in.
• Can change every second as prices move.

How to Calculate Unrealized P&L

For most CFDs, platforms calculate it like this (before fees):

• Long (Buy): (Current Price − Entry Price) × Position Size × Point Value
• Short (Sell): (Entry Price − Current Price) × Position Size × Point Value

Then the platform applies spread, commission, and overnight funding (if any).

Unrealized P&L Example

You buy EURUSD at 1.10000. Later, price is 1.10201.

• Price moved 0.00201 (that’s 20.1 pips if 1 pip = 0.00010).
• If your position size makes each pip worth 10 Dollars, your unrealized profit is 20.1 × 10 = 201 Dollars (before costs). If price falls below your entry, your unrealized profit and loss or Floating P&L turns negative (an unrealized loss).

(You’ll see similar logic on indices, commodities, or stocks; only the “point value” per contract differs.)

When Unrealized Turns Realized

• Close the trade: your current unrealized number is locked in as realized P&L.
• Partial close: part becomes realized; the remainder stays unrealized on the reduced position.

Where You’ll See It in Your Platform

• Next to each open position.
• In the account summary as “Unrealized P&L” or “Floating P&L”.

Common Mistakes to Avoid

• Counting it as final: it can reverse until you close the trade.
• Ignoring costs: spread, commissions, and overnight funding can reduce your P&L.
• Confusing equity and balance: balance excludes unrealized p&l; equity includes it.