what is an unrealized gain 
the term unrealized gain refers to an increase in the value of an asset such as a stock position or a commodity like gold that has yet to be sold for cash as such an unrealized gain is one that takes place on paper as it has yet to be realized an unrealized gain becomes realized once the position is sold for a profit it is possible for an unrealized gain to be erased if the asset s value drops below the price at which it was bought investopedia laura porter