# Unrealized Gain

*Saving & Investing — Finicade finance glossary*

An unrealized gain is profit that exists on screen but not in your pocket, because you still hold the asset. It becomes real — and in most systems taxable — only when you sell. This gap is the foundation of tax-efficient investing: an untaxed unrealized gain keeps compounding on money you would otherwise have paid to the government, which is why buy-and-hold beats equally skilled frequent trading even before fees.

**Also known as:** paper gain, unrealised gain, unrealized loss

**Related terms:** [Capital Gain](https://finicade.com/glossary/capital-gain), [Cost Basis](https://finicade.com/glossary/cost-basis), [Capital Gains Tax](https://finicade.com/glossary/capital-gains-tax), [Mark to Market](https://finicade.com/glossary/mark-to-market), [Capital Loss](https://finicade.com/glossary/capital-loss)

Source: https://finicade.com/glossary/unrealized-gain