Unrealized PnL
Also called: unrealized profit and loss · floating PnL · paper profit · uPnL
Definition
Unrealized PnL is the profit or loss on a position that is still open, calculated from your entry price and the current price, and it only becomes real when you close the position.
How unrealized PnL works
PnL stands for profit and loss. While a position is open, its value changes with every price move, and the exchange shows this as unrealized PnL. Once you close the position, the result is locked in as realized PnL and added to or taken from your balance.
On futures exchanges, unrealized PnL is usually calculated with the mark price, not the last traded price. Exchanges often also show ROE or ROI, which is unrealized PnL divided by your margin. With leverage, ROE can look dramatic: a 2% price move at 25x shows as a 50% gain or loss on margin.
Unrealized PnL matters for risk. A growing unrealized loss reduces your margin balance and brings you closer to liquidation. In cross margin mode, unrealized profit on one position can support others, but it can disappear quickly if the market turns. Some exchanges limit how much unrealized profit you can withdraw or use as margin.
Example
Suppose you open a long of 3 SOL perpetual contracts, each worth 1 SOL, at 150 USDT. The mark price rises to 162. Your unrealized PnL is 3 × 12 = 36 USDT. If you used 90 USDT of margin (5x), the exchange shows an ROE of 36 ÷ 90 = 40%. If the price falls back to 150 before you close, that 36 USDT disappears and your realized PnL is zero minus fees.
Common mistakes
- Counting unrealized profit as money already earned.
- Judging a trade by ROE percentage without looking at the actual amount at risk.
- Forgetting that fees and funding reduce the realized result compared with the displayed unrealized PnL.
Learn and practise
FAQ
What is the difference between realized and unrealized PnL?
Unrealized PnL is the current paper result of an open position. Realized PnL is the final result after you close it, including fees.
Why is my unrealized PnL different from what the chart suggests?
Exchanges usually calculate it with the mark price, while the chart shows the last traded price. Fees may also be estimated in.