PnL: realized and unrealized
PnL (profit and loss) is the profit or loss on a trade. Unrealized PnL is the paper result of an open position, while realized PnL is what is locked in after you close.
How it works
While a position is open, the exchange shows unrealized PnL: the difference between your entry and the current price, times your size. On futures it is usually calculated from the mark price rather than the last trade, so one sharp print does not distort it.
When you close all or part of a position, that part of PnL becomes realized and lands on your balance. On futures, realized PnL usually includes fees and funding, so it can differ from what you saw just before closing.
For a long, PnL = (exit price − entry price) × size; for a short it is the other way round. An unrealized loss reduces your free margin and moves you closer to liquidation, even if you have not closed and feel you have not lost anything yet.
Long 0.1 BTC at $60,000. Price hits $63,000: unrealized PnL = 0.1 × $3,000 = +$300. You close half at $63,000: +$150 realized, minus fees. The other half still shows unrealized PnL, and if price returns to $60,000 it drops to zero.
The mistake is not treating an unrealized loss as real: I have not closed, so I have not lost. For your account it is real already: it eats free margin and can lead to liquidation. Decide to close or hold based on your plan and stop, not on the wish to get back to breakeven.
Questions and answers
What is PnL in simple terms?
It is your profit or loss on a trade. A plus means you made money, a minus means you lost.
What is the difference between realized and unrealized PnL?
Unrealized is the result of an open position and moves with price. Realized is the locked-in result after closing, including fees.
Why does the exchange PnL not match my own math?
The exchange may use the mark price, subtract fees and include funding. Check which price and charges it uses.
Related terms
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Updated: 2026-10-19