What is Realized Gain?
Realized Gain is the increase in the value of the profit of an investment that has been converted into actual cash through a sale. A realized gain occurs when an investment is sold for more than its purchase price, resulting in a positive return on the investment.
For example, if you purchase a stock for $100 and its value increases to $120, you have a realized gain of $20 if you sell the stock at $120 immediately. The $20 gain is realized because it has been converted into actual cash through the sale of the stock.
To put it simply, the realized gain represents the actual increase in wealth that has been generated from the investment after you sold it.
“% Realized Gain” is a number indicating the percentage of the securities’ realized gain in the investment portfolio.
What is Realized Loss?
Realized Loss is a term used to describe a loss that has occurred on an investment that has been realized by converted into actual cash through a sale. An unrealized loss is an actual loss that exists as a decrease in the value of an investment portfolio.
In other words, this is a real loss for the investment, not just a “paper loss”.
For example, if you purchase a random cryptocurrency for $168 and its value decreases to $100, you have an “unrealized loss” of $68.
But when you sell that cryptocurrency for $100, your unrealized loss becomes a realized loss immediately.
“% Realized Loss” is a number indicating the percentage of the securities’ realized loss in the investment portfolio.
