Crypto educational platform CryptoComLearn recently published an article explaining unrealized P/L, also known as floating P/L. It highlights that profit or loss displayed in open positions is merely theoretical until the trade is closed.
Unrealized P/L: Theoretical Gain or Loss on Open Positions
The term “floating” reflects the constant change in value while a position remains active. For example, opening a long position on 1 Bitcoin at $50,000 and seeing it rise to $60,000 yields an unrealized profit of $10,000. However, that profit is not locked in. If Bitcoin crashes to $45,000 shortly after, the same position shows an unrealized loss of $5,000.
Profit Doesn’t Belong to You Until You Realize It
The article stresses: “The profit you see in your trading terminal does not belong to you until you hit the Sell button for a long position or the Buy button for a short position.” Until then, the amount is just a theoretical figure that can vanish anytime the market moves against the trade.
Tracking Floating P/L on CEX.IO
Traders using CEX.IO Broker can view their total Floating P/L in the trading terminal header, or check the P/L indicator in the account statement. The platform notes that these numbers are not final and subject to change as long as positions remain open.
The original article carries a disclaimer stating it is for informational purposes only, not financial advice, and that digital asset trading involves risk.