Unrealized Gain/Loss

The profit or loss that exists on paper for an open position that has not yet been closed. A stock bought at $40 and now trading at $55 has a $15 unrealized gain per share, but that gain only becomes "real" when the shares are sold. For tax purposes, unrealized gains are not taxable events, which is why ultra-wealthy investors sometimes borrow against appreciated positions rather than selling and triggering capital gains taxes.