I was asked: What’s the difference between unrealized P&L and realized P&L?
My answer: The return on equity (ROE) shown on the page is usually calculated by dividing unrealized P&L by the initial margin, so leverage amplifies it. In cross margin mode, unrealized gains are added to the margin balance and help other positions withstand market fluctuations. When the market retraces, this buffer shrinks accordingly.
$BTC 83714.01 (-0.13%)
What do you think? Let’s discuss in the comments.
My answer: The return on equity (ROE) shown on the page is usually calculated by dividing unrealized P&L by the initial margin, so leverage amplifies it. In cross margin mode, unrealized gains are added to the margin balance and help other positions withstand market fluctuations. When the market retraces, this buffer shrinks accordingly.
$BTC 83714.01 (-0.13%)
What do you think? Let’s discuss in the comments.