Your activity statement reports performance using two different methodologies: Mark-to-Market (MTM) P&L and Realized/Unrealized P&L. These figures are calculated in fundamentally different ways and are not expected to match. Here is how each works.
A note on "statement period": Your activity statement can cover different lengths of time (for example, a single day, a month, or a custom date range). Wherever "statement period" is used below, it refers to the specific date range covered by the statement you are viewing. "Previous period" refers to the period immediately before that.
Mark-to-Market (MTM) P&L:
- Shows profit or loss over the specific statement period, regardless of whether positions are open or closed.
- Opening and closing transactions are NOT matched to each other.
- MTM assumes all open positions and transactions are settled at the end of each day and reopened the next day (a daily reset approach).
- MTM P&L is broken into two components:
- Position MTM: For positions carried over from a previous period — calculated as (Current Close Price − Previous Close Price) × Previous Quantity × Multiplier.
- Transaction MTM: For trades executed during the current statement period — calculated as (Close Price − Trade Price) × Quantity × Multiplier.
- "Multiplier" refers to the contract multiplier for instruments like options and futures (for example, most equity options have a multiplier of 100). For stocks, the multiplier is 1 and can be ignored.
- Commissions and fees are shown separately and are NOT netted from the P&L figures.
- Note: The MTM Performance Summary section of the statement typically includes only Position MTM and Transaction MTM. The full Activity Statement MTM total also includes commissions, broker interest paid/received, and other fees.
Example: You bought 100 shares at $50 on a prior statement, and the previous statement's closing price was $52. On today's statement, the stock closes at $55. Position MTM for today = ($55 − $52) × 100 × 1 = $300.
Realized/Unrealized P&L:
- An alternative methodology where closing transactions are matched to their corresponding opening transactions.
- A profit or loss is realized when a position is actually closed. Open positions are marked-to-market during trading hours and to the closing price at the end of the day on the Activity Statement, with the resulting P&L reported as unrealized.
- Uses specific lot-matching methods, such as FIFO (First In, First Out) or LIFO (Last In, First Out), to determine which lots are closed.
- Realized P&L: Tracks performance from the date a position was opened (even if before the statement period began) until the date it was closed, provided the closing date falls within the statement period. If a position remains open at the end of the statement period, it will not appear in Realized P&L — it will only appear in Unrealized P&L.
- Unrealized P&L: Tracks performance on positions that are still open, from the date the position was opened until the end of the statement period.
- Commissions are netted into the cost basis and sale proceeds rather than shown separately.
Example: You bought 100 shares at $50 last month and sell all 100 shares at $55 this month. Realized P&L this month = ($55 − $50) × 100 = $500. If you had instead kept the position open, the same $500 gain (based on the current close price instead of the sale price) would appear as Unrealized P&L rather than Realized P&L.
Why the two figures will not match:
- Daily Reset vs. Continuous Tracking: MTM treats each end-of-day as a close-and-reopen of all positions, while Realized/Unrealized tracks positions continuously from actual open to actual close.
- Different Time Scope: MTM is limited to the statement period only. Realized/Unrealized can reflect performance from before the statement period began, since it tracks from the original position open date.
- Commission Treatment: MTM shows commissions separately, while Realized/Unrealized nets them into the cost basis.
- Lot-Matching: Realized/Unrealized uses FIFO, LIFO, or other lot-matching methods; MTM does not match lots at all.
Both metrics are valid but measure different aspects of portfolio performance. MTM provides a snapshot of performance within a defined period, while Realized/Unrealized provides a full picture of performance from position inception to close (or to the current date, if the position is still open).