https://v2.webnotes.in/tags/unrealised/Recent content in Unrealised on WebNotesHugoen-INWed, 20 May 2026 00:00:00 +0000https://v2.webnotes.in/realised-unrealised-profit-calculation-kite/Wed, 20 May 2026 00:00:00 +0000https://v2.webnotes.in/realised-unrealised-profit-calculation-kite/<p>The distinction between <strong>realised</strong> and <strong>unrealised</strong> profit is core to portfolio accounting. On <a href="https://v2.webnotes.in/kite-zerodha/">Kite</a> , realised profit is the gain or loss locked in by completed sell trades; unrealised profit is the mark-to-market value of open positions. Tax treatment, transaction reporting, and FY-end financial planning all hinge on this distinction.</p> <h2 id="definitions">Definitions</h2> <table> <thead> <tr> <th>Term</th> <th>Meaning</th> </tr> </thead> <tbody> <tr> <td>Realised profit</td> <td>Gain or loss locked in by a completed sell of a previously bought position (or buy-back of a short)</td> </tr> <tr> <td>Unrealised profit</td> <td>Gain or loss on an open position computed at the current LTP</td> </tr> <tr> <td>Mark-to-market (MTM)</td> <td>The unrealised profit / loss; updated continuously during market hours</td> </tr> </tbody> </table> <p>Realised becomes a tax event in the FY it occurred. Unrealised does not affect tax until the position closes.</p>