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Unrealized Gains refers to profit that you can make but have yet not made.
Let’s presume you purchased a stock that has since appreciated in value. However, you have yet to sell it.
The rise in the share price is your unrealized benefit in this situation.
It’s an unrealized profit that might disappear if the stock price drops before you sell it.
When it comes to stocks, the unrealized profit fluctuates from day to day as the stock price fluctuates. In turn, it’s possible that it’ll turn negative.
It is a natural part of an investor’s quest to see the unrealized returns adjust over time.