Unrealized vs realized gain: what is the difference?

You buy 50 shares at $20, for $1,000. The price rises to $26, so the shares are worth $1,300: a $300 unrealized gain. Nothing is final yet. If the price falls back to $22, the unrealized gain shrinks to $100.

If instead you sell 25 shares at $26, you realize a gain of ($26 - $20) × 25 = $150. The 25 shares you keep still carry an unrealized gain of $150 at $26, which keeps changing with the price.

On JagSim's Portfolio, Performance analytics shows Realized gain and Unrealized gain on every plan. Realized gain is money made or lost on shares you sold, against what they cost at average cost, and it leaves dividends out. Unrealized gain is what you hold now at the latest price, against what you paid. Pro shows all 11 figures, including cost basis and dividends received. How trading works on JagSim.

Are unrealized gains taxed?

In a typical US taxable account, no: tax on a stock gain is usually due when you sell, in the year of the sale. Tax rules vary, and this is general information, not tax advice. JagSim does not work out tax.

What is an unrealized loss?

The opposite: a holding worth less than you paid. It becomes a realized loss if you sell at that price.

Is an unrealized gain real money?

Not yet. It is the value of the holding today minus its cost, and it can grow, shrink or turn into a loss before you sell.

How is a realized gain worked out when I bought at different prices?

It depends on the method. JagSim uses one average cost per holding. US brokers usually match a stock sale to the shares bought first unless you name the shares, so a real statement can show a different gain on a part sale.