Unrealized: As the market price is changing at all times, so is your profit or loss for open positions. When a position is open, we display the performance of that position as unrealized p&l. To calculate the unrealized pnl for an open position, we take the current market price to determine what you pnl is in realtime if you closed this position.Realized: When you close an open position, the profit or loss is calculated and is shown as realized since the trade has been exited.Total: Your total pnl makes up the unrealized plus the realized pnl to give you the overall performance of your portfolio.
Let’s take a case study of this:
Suppose you open a long position in the BTC/USDT pair on the futures market. You entered the position by buying a long one at 7874.23 USDT price for 1 BTC amount. With 100x leverage, you only need 78.74 USDT to make this trade.
The price continued to grow and reached 7898 USDT. Until you close this position, your profit will be unrealized, but you will know the exact amount of profit before you close the position. The BTC price has changed by exactly 24 USDT and since your purchase is equal to 1 BTC, your unrealized P&L will be 24 USDT.
You decided to wait a little bit, considering that the price will continue to rise, but it fell and to avoid risk you decided to close the position at 7890 USDT. After closing the position, your realized P&L for this transaction was 16 USDT.