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Definitions of Realised Profit, Unrealised Profit, and Average Purchase Price

This guide provides a clear overview of key definitions used in calculating profit and loss (P&L) on Young Platform.

Realised Profit (or Loss)

The realised profit (or loss) represents the gain (or loss) effectively obtained following completed transactions, such as:

  • Crypto sales
  • Crypto-to-euro conversions
  • Cryptocurrency withdrawals

The calculation is based on the difference between the average purchase price and the sale, withdrawal or conversion price in fiat currency/stablecoins. Trading fees are included in the calculation and are valued as a loss.

Example:

  • Purchase: 0.5 BTC at €15,000 (€30,000/BTC)
  • Sale: 0.5 BTC at €17,500 (€35,000/BTC)
  • Realised profit = €17,500 - €15,000 = €2,500

Note: Crypto-to-crypto conversions do not generate realised profit, except when the cryptocurrency received is a stablecoin pegged to a fiat currency (e.g. BTC > USDC). In this case, the profit is considered realised.

Unrealised Profit (or Loss)

The unrealised profit (or loss) indicates the estimated increase or decrease in the value of cryptocurrencies currently held, calculated relative to the average purchase or deposit price.

Since it has not yet been realised, it represents only a theoretical estimate of how much you could gain or lose if you decided to sell or convert to fiat/stablecoins.

Example:

  • Purchase: 0.5 BTC at €15,000 (€30,000/BTC)
  • Current value: 0.5 BTC = €17,500 (€35,000/BTC)
  • Unrealised profit = €17,500 - €15,000 = €2,500

Conversions between cryptocurrencies keep the profit as an unrealised capital gain: the value is simply transferred to the new crypto.

Average Purchase Price

The average purchase price represents the average unit cost of cryptocurrencies purchased over time. It is calculated using a weighted average, which takes into account:

  • the total spent
  • the overall quantity owned for each cryptocurrency

Characteristics of the average price:

  • It updates only in the event of a purchase
  • It does not change in the event of a sale, withdrawal or conversion
  • It is used to calculate both realised and unrealised profit

Examples of average price usage:

  • If sale price > average price → realised profit
  • If current value > average price → unrealised profit
  • In the event of conversion between cryptos → the capital gain remains unrealised
  • In the event of transfer between wallets (e.g. from Moneybox to Staking) → the average price is transferred along with the crypto

Separate calculation per wallet

The calculation of profit and loss takes place for each individual wallet separately. If a crypto is moved from one wallet to another, the system keeps the average price unchanged, to ensure continuity in calculations.

Related articles

  • Performance management with the P&L feature
  • Profit and loss: how to read data in the Analytics section
  • Profit and loss: how profit and loss calculation works