Unrealised Gain
The paper profit on a position that is still held, measured as the difference between the current price and the purchase price.
Formula
Unrealised Gain = (Current Market Price - Purchase Price) x Quantity Held
Unit
₹
In depth
An unrealised gain is a valuation, not money — it can reverse entirely and it attracts no tax until the position is sold. Portfolio screens display it prominently, which encourages people to treat it as income and to spend or leverage against it. The gap between unrealised and realised is where transaction costs, taxes and liquidity live: exiting a large position in an illiquid stock can convert a healthy paper gain into a modest realised one. Deferring realisation is often tax-efficient, but deferring it purely to avoid admitting the position has changed is a different thing entirely.
Worked example
500 shares bought at ₹200 now quote ₹260, showing an unrealised gain of (260 - 200) x 500 = ₹30,000. If the exit averages ₹254 after impact, the realised gain is (254 - 200) x 500 = ₹27,000 before tax and charges.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Unrealised Gain” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.