I’m building an open-source portfolio dashboard and keep tripping over how to explain P/L in a way that actually clicks for newcomers.
ELI5 ask:
How would you explain the difference between realized profit/loss and unrealized profit/loss to a 10-year-old?
Constraints (to keep it simple):
- Use one short analogy (max 2–3 sentences).
- Bonus if you can show a tiny numeric example (e.g., “bought at 10, now 12…”).
A couple of things that confuse people we talk to:
- “If I didn’t sell, why does the number go up/down?”
- “Fees & FX: do they belong in realized, unrealized, or both?”
Drop your best analogy below — I’ll pin the clearest one and credit you in our in-app help text 🙌
Top comments (0)