Day Trading Profits… Explained

The Difference between Realized and Unrealized Profits When discussing profits there are actually two different types of profits from making trades. The easiest way to differentiate the two kinds of profits comes down to a simple question are you making money or losing it? Realized Profits A realized profit is monies that are generated after a completed trade, or one that has been completely exited, where the trader made money from the deal. Realized profit is typically deposited directly into the day trader’s trading account at the end of the day. It is actual funds that can be withdrawn or transferred to a bank account. Day traders will see all of their realized profits on the balance sheet of their trading account statement. Depending on the account, realized profits will be tracked as part of each individual day’s trading success. Unrealized Profits In day trading futures, an unrealized profit is the equity held in a currently active trade, or a trade that is yet to be exi
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