Theoretical profit or loss of an open position determined by current market prices.
What is Unrealized Gains/Losses?
Unrealized Gains or Losses refer to the increase or decrease respectively in the paper value of the different assets of the company, which have not yet been sold by the company and once such assets are sold then the gains or losses arising on it will be realized by the company.
It is also called “paper profit” or “paper loss”. It can be thought of as money on paper, which the Company expects to realize by selling the asset in the future. When the Company sells the support, it recognizes the gains (losses) and pays taxes on such profit.
Portfolio valuations, mutual funds NAV, and some tax policies depend on Unrealized gains/losses, also called marked to market.