Realized Profit/Loss (RPL) is the actual financial gain or loss from closing a position in forex trading. It represents money actually received or lost, not potential gains or losses on open positions.
RPL is calculated as the difference between your entry and exit prices, adjusted for all costs and fees. For example, if you buy 10,000 units of a currency pair at 1.2000 and sell at 1.2100, you have a gross profit of $100, which becomes your realized profit/loss after deducting brokerage fees and spreads.
Several factors affect your RPL. Leverage amplifies both profits and losses—your actual gains and losses are multiplied by your leverage ratio. Fees (brokerage commissions, spread costs, and overnight financing charges) reduce your net profit. Position size determines how much you gain or lose per pip movement.
RPL differs from unrealized profit/loss, which are gains or losses on positions you still hold. Unrealized P/L can change until you close the position; RPL is fixed once you exit. Traders track RPL to measure actual trading performance and identify which strategies produce consistent results.
