When trading perpetual contracts, you’ll see two types of profit and loss:
Unrealised P&L
Realised P&L
Understanding the difference helps you track your trading performance.
Unrealised P&L
Unrealised P&L represents the profit or loss on an open position.
Because your trade is still active, this value changes continuously as the market moves.
No profit or loss has been locked in yet.
Example:
You open a position.
The market rises.
Your account shows a profit.
Since your position is still open, this is unrealised P&L.
If the market reverses, that amount may increase, decrease, or disappear.
Realised P&L
Realised P&L is the final profit or loss after you close your position.
Once realised, it no longer changes with market movements.
Your realised P&L is reflected in your account balance after any applicable fees are deducted.
Why Does This Matter?
Many new traders mistake unrealised profit for guaranteed profit.
Until you close your position, market prices can continue to move, causing your unrealised P&L to change.
Closing your position locks in the result.
Frequently Asked Questions
Can unrealised profit disappear?
Yes.
If the market moves against your position before you close it, your unrealised profit may decrease or turn into a loss.
When does unrealised P&L become realised?
Your unrealised P&L becomes realised when your position is successfully closed, either manually or through liquidation.