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What is Unrealized Profit & Loss?

Crypto Terms Glossary: What is Unrealized Profit & Loss?

Unrealized profit and loss (P&L) is a metric that is used to keep track of the profit or loss of open trading positions on an exchange or related platform. Generally, unrealized P&L is calculated from when a position is opened until it is closed. It is often used after opening leveraged trading positions via derivatives instruments, but can also be used for spot trading and other trading types. While unrealized P&L can be calculated for any type of trader, it is an especially important metric used by institutional investment firms that allocate large amounts of capital towards their investments.

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