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ELI5: What’s the difference between *realized* vs *unrealized* P/L?

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 🙌

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