# What is Unrealized P/L and Floating P/L?

• Unrealized P&L (Profit and Loss) is the current profit or loss on an open position. The unrealized P&L is a reflection of what profit or loss could be realized if the position were closed at that time. The P&L does not become realized until the position is closed.
• Floating Profit or Loss is the profit or loss that a trader has when they hold an open position. It floats (changes) since it changes in correspondence with the open position(s).

Floating Loss

``````Floating P/L = Position Size x (Current Price - Entry Price)

Floating P/L = 10,000 x (1.13000 - 1.15000)

-200 = 10,000 x (- 0.0200)``````

The current exchange rate for EUR/USD is 1.13000.

The position is down 200 pips.

Since you’re trading a mini lot, each pip is worth \$1.

So you currently have a Floating Loss of \$200 (200 pips x \$1).

It is a Floating Loss because you have NOT closed the trade yet.Usually, when a loss remains floating, you are hoping that the price will turn around.

If EUR/USD rose above your original entry price to 1.16000, then you would now have a Floating Profit.

The position is now up 100 pips.

Since you’re trading a mini lot, each pip is worth \$1.

So you currently have a Floating Profit of \$100 (100 pips x \$1).

Realized P/L

Realized Profit is profit that comes from a completed trade.

Same thing with a loss.

Realized Loss is a loss that comes from a completed trade.

Realized Loss

``````Floating P/L = Position Size x (Current Price - Entry Price)

Floating P/L = 10,000 x (1.13000 - 1.15000)

-200 = 10,000 x (- 0.0200)``````

The position is down 200 pips.

And since you’re trading a mini lot, each pip is worth \$1.

So you currently have a Floating Loss of \$200 (200 pips x \$1).

It is a floating loss because you have NOT closed the trade yet.

But you can’t stomach losing anymore and decide to close the trade right then and there.

You’ve realized the \$200 loss and the cash is DEDUCTED from your account balance.

But after you closed the trade with a \$200 loss, your Balance is now \$800.

Realized Profit

``````Floating P/L = Position Size x (Current Price - Entry Price)

Floating P/L = 10,000 x (1.16000 - 1.15000)

100 = 10,000 x (0.0100)``````

The current exchange rate for EUR/USD is 1.16000.

The position is up 100 pips.

And since you’re trading a mini lot, each pip is worth \$1.

So you currently have a Floating Profit of \$100 (100 pips x \$1).

It is a floating profit because you have NOT closed the trade yet.

You’ve realized the \$100 gain and the cash is ADDED to your account balance.