Profit Isn’t Real Until It’s Realized - Deepstash

Profit Isn’t Real Until It’s Realized

  • Realized profits are gains that have been converted into cash and ADDED to your account balance. 
  • Realized losses are losses that have been converted into cash and DEDUCTED from your account balance.

In other words, for you to realize profits from a trade you’ve made, you must receive cash and not simply observe the value of your trade increase without exiting the trade.

Realized P/L can no longer be affected by price changes because it is no longer part of an active trade.

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