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Trading Terms

Realized/Unrealized P/L

In the world of finance, there exists a key distinction between trading revenues. On one hand, we have those that are the result of offset and closure of positions. On the other hand, there are those that emerge from marking open positions to current market prices. This difference is crucial to understand, as it affects the overall profitability and risk management of a financial institution. Let's delve deeper into this concept and explore its implications in the world of finance.
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