Realized vs Unrealized Profit

Trading dashboards become confusing when completed profit and the changing value of unsold inventory are mixed together. AZPC separates these ideas because they answer different questions.

Realized profit and loss

A result becomes realized when the relevant trade has completed and the accounting pipeline can match the settled sale against its cost basis. Realized P&L describes completed trading outcomes rather than what an unsold item might be worth.

Unrealized profit and loss

Unrealized P&L estimates how an open position compares with its cost basis using the current valuation model. If you bought an item for 20g and it is now valued at 25g, that 5g difference is not the same thing as having completed a 5g-profit sale.

Why the distinction matters

A trader can have positive unrealized value while having little realized profit, or strong realized profit while currently holding losing inventory. Looking at both prevents portfolio value from being mistaken for cash already earned.

Revenue is another separate number

Revenue describes incoming sale proceeds. Profit subtracts the relevant cost basis. A large revenue number can therefore coexist with a much smaller profit number.

Flip-profit math · My Trading · How AZPC works