Realized Profit and Loss

Realized profit and loss represents the actual financial gain or loss resulting from a position that has been fully closed. Unlike unrealized PnL, which fluctuates with market prices, realized PnL is locked in and reflects the final outcome of the trade.

It is the amount that is added to or subtracted from the account's available cash balance. For tax purposes and performance tracking, realized PnL is the definitive metric.

Traders focus on this to evaluate the success of their strategies over time. In the context of margin trading, realized profits can be withdrawn or used as additional collateral for new positions.

Conversely, realized losses reduce the total equity, potentially lowering the margin level and increasing the risk of future liquidations. It is the concrete evidence of a trader's performance in the market.

Tracking realized PnL is essential for maintaining a clear understanding of the account's growth or depletion.