™Selling 100 shares at $55 with $50 per-share basis realizes a $500 gross gain, even if the investor immediately buys a different position.
Trading
Realized gain or loss
A gain or loss recognized when a position is closed or otherwise disposed of.
Plain-English context
Put the definition to work.
Accounting realization, economic P&L and taxable recognition can differ because of basis, tax and product rules.
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