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Unrealised gain/loss

Unrealized gain/loss refers to the profit or loss that exists in an open position but has not yet been realized because the trade has not been closed. In other words, if a trader buys a currency pair at a certain price and the price increases, the trader has an unrealized gain, but it is not realized until the trader closes the position by selling the currency pair at a higher price. Similarly, if the price decreases, the trader has an unrealized loss, which becomes a realized loss when the position is closed at a lower price. Unrealized gain/loss is sometimes also referred to as “paper” gain/loss.

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