Performance & Return
Realized Gain
Definition
The profit from a position that has been sold and converted to cash.
Realized gain is the profit crystallized through an executed disposal event after matching proceeds against the relevant cost basis and transaction costs.
Why it matters
It is a final outcome. Once realized the gain cannot be reversed by future market moves.
What most investors miss
The gap between what the term means and how it is usually applied.
They treat realized gains as performance without accounting for the tax that will reduce them. Gross realized gain is not net portfolio benefit.
How to read it
Read realized gain alongside its tax cost. The net figure is what matters for portfolio return.
Multi-account lens
How this term reads differently across brokers and accounts.
Realized gains across multiple accounts may trigger different tax treatments depending on jurisdiction account type and asset class. Consolidated tracking prevents surprises.
Related terms
Terms that connect to realized gain.
Unrealized Gain
The increase in value of a position that has not yet been sold and therefore has not yet been converted to cash.
Cost Basis
The original purchase price of a holding used to calculate the gain or loss when the position is sold.
Capital Gains Tax
Tax applied to the profit from selling an asset at a higher price than its purchase cost.
Continue only if the next question is clearer now
Diagnosis first, then workflow, then fit.
Follow Upogee on X
Product updates, portfolio review ideas, and building notes.