Unrealized Gain

An increase in the value of an asset that has yet to be sold for cash, such as a stock position, an option contract or a commodity. Once the position is sold for a profit, a gain is realized. If the asset's value falls below the price at which it was purchased, an unrealized gain may be erased, and will turn into an unrealized loss. When the equity is sold and the position is closed, only the it will result in a real loss.