Realised versus unrealised PnL

Realised PnL comes from closing or reducing exposure under the accounting method. Unrealised PnL measures the current gain or loss on remaining open exposure. A profitable closed-trade record can coexist with a large open loss, so read both before assessing a wallet.

Follow the position through its lifecycle

A new position begins with exposure and an entry basis. As prices move, its marked gain or loss changes without the whole position being closed. Reducing exposure realizes a result on the closed portion while the rest remains open. A final close removes the remaining market exposure, subject to any residual quantity.

A fill-level closed-PnL field and a grouped completed-trade result may differ in timing or aggregation. Read whether the tracker groups partial closes into a single position lifecycle or counts each execution separately.

Use a simple numerical example

Hypothetical example: ten units are bought at $100 and later valued at $110. Ignoring costs, the open position has $100 of unrealised gain. Selling four units at $110 realizes $40; the remaining six units have $60 of unrealised gain at that same price. The original $100 gain is split, not earned twice.

If those six units later fall to $90, their unrealised result becomes a $60 loss. The earlier $40 realised gain still happened, but it does not establish a profitable final outcome for the whole sequence.

Costs and account flows require separate treatment

Exchange fees and funding can reduce the account’s economic result. Whether a displayed PnL already includes each cost depends on its stated basis. A deposit increases account value without producing a trading profit. A withdrawal can reduce value after a profitable close. These movements prevent raw balance change from serving as a universal PnL formula.

Return on equity for one position is also different from the whole wallet’s return. It uses a margin-related basis rather than necessarily the total account capital. Do not compare a position percentage with an account percentage as if they share a denominator.

Read both realised and current exposure

For a wallet review, start with the period’s measured closed results, then inspect the current open book and its valuation time. Ask whether a few open positions dominate the account’s outcome. When comparing trackers, align performance basis and fee treatment before judging a discrepancy. A gain that remains unrealised can reverse before execution.

  • Check partial closes and grouping.
  • Use current marks for open exposure.
  • Avoid adding an included component twice.
  • Keep deposits and withdrawals outside trading profit.

Sources and further reading