I just started an investment account and I have no idea what “Unrealized Gain/Loss” means. I’ve tried looking it up and asking friends but its just not clicking with me. Can anyone explain to me in the simplest terms possible with no jargon. Thanks!
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“Realized Gains” are when the value of your investment is up and you decide to sell, thus taking a profit.
“Unrealized Gain/Loss” means gains that you haven’t converted into cash. As such, your gain today could turn into a loss tomorrow if the value of your investment drops, because you didn’t “realise” the gain earlier (ie take a profit).
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