Futures Realized vs. Unrealized P&L Explained
Learn why a futures platform's open P&L, daily variation cash, and an offset or roll are separate records, and how to reconcile them without double counting
Direct answer
A futures platform can show a mark-based open P&L while the clearing process moves variation cash on the same still-open contract after daily settlement. These are distinct records, not rival answers: a live mark depends on a platform's price and lot convention; daily variation follows the applicable settlement process; an offset, roll, expiry, or delivery process changes the contract state. Reconcile individual fills, official settlements, multiplier, fees, and remaining quantity before totaling P&L. A favorable screen value is not an executable close, daily variation is not extra profit to add a second time, and tax or accounting labels require the rules that govern the specific account and jurisdiction.
Treat three ledgers as different records
An app's open P&L is an estimate against a platform-selected mark and its assigned entry basis. The mark might update during a session, and the platform's treatment of lots, fees, and labels can differ from another account statement.
Daily variation is a separate clearing record. An open futures position is marked through the applicable settlement process, so cash can be paid or collected even though the contract has not been offset. Futures settlement price versus last trade explains why the official settlement value need not be the most recent screen trade.
An offset, expiry, or delivery event is a third record: it changes or ends a specific contract position. Do not use one generic word such as “realized” to collapse all three records when the platform, statement, tax rules, and contract lifecycle can use different conventions.
Follow daily variation without closing the position
Consider a simplified long one-contract path. If the first daily settlement is 2 price units above the prior reference and the next settlement is 1 unit lower, the two settlement-based cash changes are +2 and −1 price units times the applicable quantity and contract economics. Their cumulative price change is +1 unit before fees.
The position can remain open throughout that path. The first cash collection is not a second profit to add on top of the cumulative result, and the second payment does not prove the first day's result disappeared. It is a sequence of daily settlements for the same exposure.
Futures tick value and contract multipliers shows why a price-unit example becomes cash only after the exact contract's quote convention, multiplier, tick value, and quantity are known. It does not establish a platform's live mark or an achievable exit price.
Keep a partial offset and a roll in separate lanes
If two contracts are offset from a five-contract position, the completed fills belong to those two contracts. The remaining three are still open and need their own current mark and later settlement records. Combining all five into one screen number can hide which quantity actually changed state.
A roll also has two lanes: it offsets the old contract month and opens a position in another month. A credit or debit on the new month does not erase the old month's result. Futures contract roll mechanics separates the expiry transition from a claim that the same contract continued unchanged.
At the end of a contract, the final process matters too. A cash-settled contract and a deliverable contract can end through different procedures, so the final account record should not be assumed to be a simple cash close. Cash-settled versus physically delivered futures maps that distinction.
Reconcile one contract month before totaling the account
Start with one exact symbol and month instead of the account total. Match the side and quantity, opening and offset fills, official settlement dates and values, contract multiplier, platform mark, fees, variation cash entries, and remaining quantity.
Margin and available cash remain separate risk controls; neither is a P&L label or a cap on loss. A reconciliation can explain a statement difference, but it cannot make a marked value executable or determine account-specific reporting and tax treatment.
- Compare every P&L figure with the price reference and timestamp it uses
- Match a completed offset only to the quantity that actually filled
- Keep roll legs and any resulting delivery or final-settlement record visible rather than netting them into a new entry price
Common questions
Does daily variation cash mean every platform calls the P&L realized?
No. Daily settlement can create cash movement on an open futures position, while a platform's displayed P&L labels depend on its reporting convention. Read the specific statement and do not treat a label as a universal tax or accounting conclusion.
Why can marked P&L differ from what I receive when I close?
A mark is a reference value, not proof of an executable fill. The actual result depends on the completed exit price, quantity, contract economics, fees, and any settlement or delivery process that still applies.
Does rolling turn an old futures loss into new P&L?
No. A roll offsets the old month and opens another month. Keep the old fills and resulting records separate from the new contract's mark, daily variation, and eventual close or final process.