What’s the difference between unrealized P&L and realized P&L?
Realized P&L is the profit or loss locked in when a portion of a position is closed. It’s added to your account balance and no longer changes with the price.
Unrealized P&L for a long position = (mark price − entry price) × position size; for a short position = (entry price − mark price) × position size.
When managing positions, one of the most important things to keep in mind is to focus on the net result after fees and funding fees are deducted when reviewing your trades. It’s more realistic than looking at the return rate alone.
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