GlossaryBeginner
Unrealized Gain
A paper profit on an asset you still hold, which hasn't been locked in yet.
An unrealized gain is a paper profit on an asset that's still held: its current value is higher than its cost basis, but no sale or disposal has occurred to lock in that gain.
Because the asset hasn't been sold, an unrealized gain can shrink, disappear, or grow further depending on how the asset's value changes before any sale.
Examples
- An asset purchased for $100 that's now worth $150 has a $50 unrealized gain while still held.
- An unrealized gain isn't locked in and can change in either direction before the asset is sold.