In tracking the performance of trade activity, it is a common practice to differentiate between transactions that have been closed and those that remain open. Gains or losses resulting from closed transactions are referred to as "realized" and those associated with positions that remain open are referred to as "unrealized".
In determining "unrealized" performance, a last traded price or a price derived from the bid-ask (if last trade is dated or not within bid-ask) is often used.
Note
- "Realized" gains and losses may be relevant for certain products and clients for tax purposes. Clients should consult with a tax advisor to determine what tax consequences, if any, apply to their transactions.