What is Unrealized P&L?
The profit or loss on an open position that has not yet been locked in by closing the trade — calculated using the current mark price.
Unrealized P&L (also called unrealised profit and loss, or UPnL) is the theoretical profit or loss on a position that is still open. It updates in real time as the price moves but is not yours until you close the trade.
Formula:
Example: You open a BTC long at $50,000 for 0.1 BTC. BTC mark price is now $52,000.
UPnL = ($52,000 − $50,000) × 0.1 = **+$200**
This $200 is unrealised — if BTC falls back to $50,000 before you close, it disappears.
Unrealized vs. Realized P&L:
| Type | Definition | When it counts |
|---|---|---|
| Unrealized | Open position, not closed | Theoretical — can change |
| Realized | Closed position | Permanent — locked in |
Why this distinction matters:
Many traders make the mistake of treating unrealized profits as real. An account showing +$5,000 unrealized P&L can become −$2,000 if the trade reverses before closing. Take-profit orders convert unrealized gains to realized gains — use them.
Impact on margin:
Unrealized P&L affects your available margin in cross margin mode. Positive UPnL increases your effective balance (and liquidation buffer). Negative UPnL reduces it.