In plain English
What Realized profit and loss means
For a long position, realized profit or loss generally reflects the difference between the sale price and purchase price; the direction is reversed for a short position. Closing only part of a position realizes the result on that portion, while the remainder continues to have unrealized profit and loss. Statements may present gross and net figures separately.
Why it matters
Realized profit and loss affects the account balance and provides the final booked result for completed exposure. It can differ from the profit displayed before closing because the closing execution price, spread, slippage, commissions, swap or overnight financing, and other charges may change the net amount.
Example
A trader buys 10,000 units of a currency pair and later closes the entire position for a gross gain of $120. The broker charges $8 in total commission and posts $4 in financing costs. Simplified realized P&L is $120 − $8 − $4 = $108. The $108 is then reflected in account balance under the broker’s posting rules.
Quick answers
Common questions
What is the difference between realized and unrealized P&L?+
Realized P&L comes from a closed or settled portion of a position. Unrealized P&L is the current estimated gain or loss on a position that remains open and can change as market prices move.
Can a partial close create realized P&L?+
Yes. Closing part of a position realizes the gain or loss on the quantity closed. The quantity still open retains an unrealized P&L calculated from current market prices.
Sources