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Discussion in 'Investing Glossary' started by Glossary, 26th Sep, 2006.

  1. Glossary

    Glossary Active Member

    12th Sep, 2006

    Not yet taken. Generally used to describe changes to an asset value on "paper", where the valuation of an asset has changed, but the asset has not yet been sold to "realise" those changes.

    For example, if an asset you purchased for $100,000 has risen in value to $120,000 and you still own it, this is said to be an unrealised gain (or unrealised profit) of $20,000. If you sell the asset to take those profits, then you are "realising" the profits.

    Similarly with losses - you haven't actually lost something until you sell an asset for less than you paid for it. At that point you have realised your losses. Until you sell, the loss is considerd "unrealised" or a "paper loss".

    Also known as:
    • Paper profit (unrealised profit)
    • Paper loss (unrealised loss)

    See also:
    Last edited by a moderator: 26th Sep, 2006