Definition – What does Unrealized Loss mean?
An unrealized loss is a negative balance on a trade that hasn’t been closed. The value of any position in the forex market fluctuates constantly, so it is not unusual for an open trade to have unrealized losses followed by unrealized gains. An unrealized loss is also referred to as a paper loss.
ForexTerms explains Unrealized Loss
Until a trade is settled, all losses and gains are unrealized. These are called paper losses and gains because they only exist on paper (well, on screen at least) and not as cash in hand. A trade must be closed and settled before a loss is counted as realized.
