<p>Realised P/L (profit and loss) is the financial result from positions that have been closed, representing the actual gain or loss a trader has locked in after exiting a trade. Unlike unrealised P/L, which reflects the paper value of open positions, realised P/L directly impacts the account <a href="/NewSite/encyclopedia/balance/" class="ency-link">balance</a> and is recorded in the trading statement once the trade is settled.</p>

<h2>How It Works</h2>
<p>When a trader opens a position in forex or CFDs, the market price fluctuates. The unrealised P/L shows the potential profit or loss based on the current price. Once the trader decides to close the position—by executing an opposite trade of equal size—the price difference between entry and exit is calculated. This difference, multiplied by the position size and adjusted for any commissions or spreads, becomes the realised P/L. The amount is then added to or subtracted from the account <strong>balance</strong> and appears in the trade history.</p>

<h2>Why It Matters for Traders</h2>
<p>Realised P/L is the true measure of trading performance because it reflects money that has actually been gained or lost. It determines whether a trading strategy is profitable over time and affects decisions about risk management, position sizing, and future trades. Monitoring realised P/L helps traders avoid the illusion of profitability from open trades that could reverse before closure. For accounts offered by <strong>STB Provider</strong> on the <strong>MetaTrader 5</strong> platform, realised P/L is updated instantly after each trade, providing clear feedback for performance analysis.</p>

<h2>Example</h2>
<p>A trader buys 1 standard lot (100,000 units) of EUR/USD at 1.1000. Later, the price rises to 1.1050 and the trader closes the position. The price movement is 0.0050 (50 pips). Profit = 100,000 × 0.0050 = $500. Assuming a $2 commission, the realised P/L is $498, which increases the account balance by that amount. If the price had moved to 1.0950 instead, the loss would be $500 minus commission, reducing the balance accordingly.</p>

<h2>Key Takeaways</h2>
<ul>
<li><strong>Realised P/L</strong> is profit or loss from closed positions and directly changes the account balance.</li>
<li>It differs from unrealised P/L, which only shows the potential outcome of open trades.</li>
<li>Tracking realised P/L is essential for evaluating strategy effectiveness and making informed risk decisions.</li>
</ul>