What is Unrealised P&L?

An unrealised P&L, often called a paper profit or loss, reflects the change in the value of an investment you still hold. It shows the notional gain or loss based on the current market price versus your purchase price. However, since the asset has not been sold, the return is not yet locked in.

In simple words, it means your investment has gone up or down in value, but you have not sold it yet. So the gain or loss is not final.

Example:
Suppose you purchased 100 shares of Company X at ₹200 per share, making your total investment ₹20,000.
If the current market price rises to ₹250, the unrealised gain will be:
(₹250 – ₹200) × 100 = ₹5,000.
This ₹5,000 is a gain on paper. It reflects the potential profit, but no cash is realised until you sell the shares.