Unrealized Gains/Losses

Unrealized gains or losses refer to the paper profit or loss on your active positions that haven't been closed yet. They are a snapshot of how you are doing right now, but they can change in an instant as the market moves.

It is important to look at these not as guaranteed money, but as temporary results. Don't get too excited about unrealized gains or too depressed about unrealized losses.

They are just a part of the trading process. When you close your position, they become realized, and that is when they really count.

For a margin trader, these unrealized figures are critical because they affect your margin and your risk of liquidation. If your unrealized losses grow, your margin shrinks, and you get closer to a margin call.

This is why it is so important to keep a close eye on these figures. They are the pulse of your active trades.

Be aware of them, but don't let them drive your emotions.