Paper Profits
Paper profits refer to gains on open positions that haven't been cashed out. They are called "paper" because they exist as long as the market price is favorable, but they are not yet part of the realized cash balance.
If the market reverses, these paper profits can quickly turn into losses. They represent potential value that must be managed.
Glossary
Paper Gains Conversion
Conversion ⎊ The concept of Paper Gains Conversion, within cryptocurrency derivatives, fundamentally addresses the realization of theoretical profits accrued from options or futures contracts before the underlying asset is actually delivered or exchanged.
Realized Profits
Profit ⎊ Realized profit represents the actual gain achieved from closing a financial position, where the asset or derivative contract has been sold for a higher price than its purchase price.