Unrealised Profit

Unrealised Profit (also called a Paper Profit) refers to the gain that exists on paper for an open investment position that has not yet been closed or sold. For example, if an investor purchases a stock at ₹500 and it is currently trading at ₹700, the ₹200 per share gain is unrealised until the position is liquidated. Unrealised profits are reflected in a portfolio's marked-to-market value but are not subject to capital gains tax until the position is actually sold and the gain is booked.