Definition
Realized profit (or loss) is the result of a position you have closed. Unrealized profit (or loss) is the result an open position would have if it were closed at the current market price.
"Floating profit" means the same as unrealized profit. It "floats" because it changes with every price tick until you close the trade.
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Worked example (hypothetical)
Say you buy EUR/USD at price A.
- The market moves up to price B, and the position is still open. The gap between A and B, multiplied by your position size, is your unrealized profit. You have not received it yet.
- The market then falls back below A before you act. The same position now shows an unrealized loss. The earlier gain is gone because it was never locked in.
- You close the trade at price C. The difference between A and C, after costs, becomes realized and is added to or taken from your balance.
To get the money amount for real prices and sizes, use the tools on the Calculators page.
Where the terms appear
In MetaTrader (see MetaTrader 5):
- The open positions list shows a profit column. This is the floating result.
- Balance includes only realized results.
- Equity = balance + floating profit or loss. Free margin and margin level are calculated from equity, not from balance.
- The history tab and your account statement list closed trades, which are realized results.
In reports and news: companies and banks report "unrealized gains or losses" on assets they still hold, valued at market price (mark-to-market). They report "realized" results when the assets are sold.
Details for experienced traders
- Stop-out turns floating into realized. Leverage magnifies floating losses. If they push margin level down to the stop-out level, positions are closed automatically, and the loss is realized. Leveraged CFD and forex trading can lose money fast. See Risk management.
- Partial close: closing part of a position realizes the result on that part only. The rest stays floating.
- Costs: spread is reflected in floating P/L from the moment you open. Commission and swap may be shown in separate columns, so the profit column alone can differ from the final realized figure.
- Currency conversion: P/L is earned in the quote currency and converted to your account currency. An unrealized result can change even if the instrument's price stays flat, because the conversion rate moves.
- Hedged positions: opposite positions on the same instrument can lock the net floating result, but nothing is realized until the positions are closed.
- Accounting and tax: many frameworks treat realized and unrealized results differently. Tax rules on capital gains and losses depend on the jurisdiction and the type of asset, so check them with a qualified adviser.
Related terms
Frequent questions
What does floating profit mean?
It is the unrealized result of an open trade, valued at the current price. It changes until you close the position.
Can I withdraw unrealized profit?
Unrealized profit is not in your balance yet. It becomes part of the balance only after the position is closed.
Why is my equity different from my balance?
Equity includes the floating profit or loss of open positions. Balance includes only closed results.
Is a floating loss a real loss?
It is not realized yet, but it counts against your equity and margin. If the position is closed, either by you or by stop-out, the loss becomes realized.