Realised profit/loss represents the actual financial gain or loss from closed trading positions, calculated as the difference between entry and exit prices minus transaction costs. Unlike unrealized P&L from open positions, realized P&L represents actual cash flows that affect account balances and tax obligations.

Realized P&L is crucial for performance measurement, tax reporting, and cash flow management. Timing of position closure affects both realized results and tax implications. Understanding the distinction between realized and unrealized P&L helps manage trading psychology and financial planning effectively.

Real-world example: A trader buys Tesla stock at $200 and sells at $250, realizing a $50 per share profit that becomes actual cash in their account, unlike unrealized gains on open positions that fluctuate with market movements.