Unrealized Profit & Loss: What Is It and How Does It Affect?

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Bittime - Unrealized Profit & Loss is a term used to describe unrealized gains or losses from an investment. Unrealized profit & loss occurs when the value of a security changes before it is sold, thus creating a potential profit or loss that is still virtual.

Unrealized profit & loss may change at any time, depending on market price fluctuations. Unrealized profit & loss is important to understand, because it can affect investment strategies, taxes, and financial statements.

Examples of Unrealized Profit & Loss

Suppose you buy 100 shares of ABC for Rp 10,000 per share, with a total investment of Rp 1,000,000. After one month, ABC's share price rose to Rp 12,000 per share. If you sell ABC shares at that time, you will make a profit of Rp 200,000, which is referred to as realized profit. However, if you decide to hold ABC shares, you will have an unrealized profit of $200,000, which has not been realized until you sell the shares.

Conversely, suppose you buy 100 shares of XYZ for Rp 10,000 per share, with a total investment of Rp 1,000,000. After one month, XYZ's share price dropped to Rp 8,000 per share. If you sell XYZ shares at that time, you will incur a loss of Rp 200,000, which is referred to as a realized loss. However, if you decide to hold XYZ stock, you will have an unrealized loss of $200,000, which has not been realized until you sell the stock.

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Effects of Unrealized Profit & Loss

Unrealized profit & loss have different effects, depending on the type of investment, investment goals, and investment period. Here are some possible influences:

Influence on Investment Strategy 

Unrealized profit & loss can affect your investment decisions, especially if you are a short-term trader who often makes transactions. You may want to realize your profits before the price changes, or cut your losses before they get bigger. You may also want to adjust your portfolio according to market conditions, by selling underperforming securities and buying outperforming securities.

Effect on Taxes 

Unrealized profit & loss does not affect your taxes, because you have not sold your securities. You will only be taxed on realized gains or losses, i.e. the difference between the sale price and the purchase price.

The tax you have to pay also depends on the type of security, the length of time you hold the security, and the applicable tax rate. You may be able to reduce your taxes by using realized losses to offset realized gains, referred to as tax loss harvesting.

Effect on Financial Statements 

Unrealized profit & loss dapat mempengaruhi laporan keuangan Anda, tergantung pada metode akuntansi yang Anda gunakan. Jika Anda menggunakan metode akuntansi biaya historis, Anda tidak perlu mencatat unrealized profit & loss, karena Anda hanya mencatat nilai buku sekuritas Anda, yaitu harga beli yang Anda bayarkan. 

Jika kamu menggunakan metode akuntansi nilai wajar, maka kamu perlu mencatat unrealized profit & loss, karena kamu mencatat nilai pasar sekuritasmu, yaitu harga yang berlaku di pasar. Unrealized profit & loss akan mempengaruhi laba rugi, dan juga ekuitasmu. Demikian tentang pengertian Unrealized profit & loss dan contohnya. Semoga bermanfaat! 

Cara Beli Crypto di Bittime

Kamu bisa beli dan jual aset crypto dengan cara yang mudah dan aman melalui Bittime. Bittime adalah satu aplikasi kripto terbaik di Indonesia yang sudah resmi terdaftar Bappebti. 

Untuk bisa beli aset crypto di Bittime, pastikan kamu telah melakukan registrasi dan menyelesaikan verifikasi identitas. Selain itu, pastikan juga kalau kamu punya saldo yang cukup dengan melakukan deposit sejumlah dana ke wallet. Sekadar informasi, minimal pembelian aset di Bittime adalah Rp10.000. Setelah itu, barulah kamu bisa melakukan pembelian aset crypto di aplikasi. Belajar Panduan Lengkap Cara Beli Crypto di Bittime. 

Pantau pergerakan grafik harga Bitcoin (BTC), Ethereum (ETH), Solana (SOL) dan kripto lainnya untuk mengetahui tren crypto market hari ini secara real-time di Bittime.

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DISCLAIMER: This article is informational in nature and does not constitute an offer or solicitation to sell and buy any crypto asset. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices may change significantly from time to time and Bittime is not responsible for fluctuations in crypto asset exchange rates.