<p>Unrealised P/L is the profit or loss that accumulates on open positions before they are closed. It reflects the difference between the current market price of a trade and the price at which the position was opened, multiplied by the trade size. Although the amount is not yet realised in cash, it directly influences the trader’s <a href="/NewSite/encyclopedia/equity-account/" class="ency-link">equity</a>-account and margin requirements on platforms such as MetaTrader 5 offered by STB Provider.</p>

<h2>How It Works</h2>
<p>When a trader opens a forex position, the broker records the entry price. As the market moves, the value of that position fluctuates. The Unrealised P/L is calculated in real time by subtracting the entry price from the current bid or ask price, depending on whether the position is long or short, then multiplying by the lot size. The result is added to or subtracted from the account’s balance to show the equity‑account value. No cash changes hands until the position is closed, at which point the Unrealised P/L becomes realised profit or loss.</p>

<h2>Why It Matters for Traders</h2>
<p>Monitoring Unrealised P/L helps traders gauge the performance of their open trades without waiting for closure. It affects the equity‑account, which determines available margin and the ability to open new positions. If Unrealised P/L becomes negative enough to breach the margin maintenance level, the broker may issue a margin call or automatically close trades. Understanding this metric also aids in setting stop‑loss and take‑loss levels, as traders can see how far the market has moved relative to their risk targets.</p>

<h2>Example</h2>
<p>A trader buys 1 standard lot (100,000 units) of EUR/USD at 1.1000. Later the market price rises to 1.1050. The Unrealised P/L is:</p>
<table>
<tr><td>Current price</td><td>1.1050</td></tr>
<tr><td>Entry price</td><td>1.1000</td></tr>
<tr><td>Difference</td><td>0.0050</td></tr>
<tr><td>Lot size</td><td>100,000</td></tr>
<tr><td>Unrealised P/L</td><td>0.0050 × 100,000 = $500</td></tr>
</table>
<p>The $500 is added to the equity‑account. If the price instead fell to 1.0950, the Unrealised P/L would be –$500, reducing equity and potentially impacting margin.</p>

<h2>Key Takeaways</h2>
<ul>
<li><strong>Unrealised P/L</strong> shows profit or loss on open positions before they are closed.</li>
<li>It directly affects the equity‑account and margin requirements on trading platforms.</li>
<li>Positive Unrealised P/L increases available margin; negative Unrealised P/L can trigger margin calls.</li>
<li>Real‑time tracking of Unrealised P/L helps traders manage risk and decide when to close or adjust trades.</li>
</ul>