Realised and unrealised profit: why open positions can mislead
The difference between profit that is locked in and profit that is only on paper, and why both matter when reading a track record.
Two kinds of profit
Realised profit is booked when a position is closed. Unrealised profit is the current gain on positions that are still open. It changes every second and disappears if the market turns before you close.
A track record made mostly of unrealised profit is a snapshot, not a result.
Why we show both
On our home page we split the growth into closed trades (before fees) and an estimate of what is still open. At times the open part is the larger one. We state that openly because it is the honest way to read the numbers.
A strategy that closes losing trades early and lets winning trades run will often show open positions in profit and closed trades with a low win rate. That pattern is normal for that style, but it also depends on the market continuing to cooperate.
How to read any track record
Ask: how much is realised? Over how long? How big was the worst drop? Are deposits removed? A record without answers to these questions is marketing.
This is a record of our own account, not advice. Leveraged trading can lose more than you expect, quickly. Read the risk notice.