Unrealized gainunrealized P&L
Definition
An unrealized gain is the profit or loss on assets you still hold: current market value minus purchase cost. It moves with the market until you sell.
An unrealized gain, also called a paper gain, is the difference between the current market value of the assets you hold and their purchase cost. Until you sell, this result changes every day with the price and can turn into a loss.
Example: you buy 10 shares at 100 (cost 1,000) and the price rises to 150. The market value is 1,500 and the unrealized gain is 500, or 50% of the cost. If you sell 4 shares, 200 becomes a realized gain, and 300 of unrealized gain remains on the other 6 shares.
Foreign assets
For assets in a foreign currency, the purchase cost is converted at the exchange rate on the purchase date, and the current value at today’s rate. The exchange-rate change since the purchase is therefore part of the unrealized gain: a share can rise in dollars and still show a loss in your home currency.
Why it matters
- An unrealized gain is not taxed. You pay tax only on the realized gain after selling.
- It shows how much profit is sitting in the portfolio and how much you could lose in a downturn.
- It does not tell you how well the whole portfolio is doing, because it leaves out closed positions. Total gain and rate of return cover that.
Unrealized gain card
On the dashboard, FundStat shows the unrealized result of everything you hold, in money and as a percentage of the purchase cost.
Related terms
All terms- Realized gainA realized gain is the result on units you have sold: sale proceeds minus their purchase cost. It is the realized result, not the paper gain, that is taxed.
- P&LP&L (profit and loss) is the result of your investments: the gain or loss in money. It splits into realized (after selling) and unrealized (on open positions).
- Cost basisCost basis is what you paid for the shares you hold, including commissions. Both your paper gain and your taxable gain are calculated from it.
- Exchange-rate impact on investment returnsWith foreign assets, your home-currency return combines the asset’s price change with the exchange-rate change. A stock can rise in dollars and still lose you money.