Account calculations · Rookie
Unrealized profit and loss
Also searched as: floating P&L, open P&L, unrealized P&L
What does Unrealized profit and loss mean?
Unrealized profit and loss is the changing gain or loss on an open position. It is also called floating P&L and can affect risk limits before a trade closes.
Example
An open position loses $800, then recovers; the temporary loss still existed.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
A later profitable exit does not erase an earlier equity-based rule violation.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.