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nick

Realization

by Nick Henfrey - Saturday, 9 May 2015, 7:14 AM
 

The p&l of trades (and cash flows) is described as:

  • Unrealized - delivery has not yet taken place, the value of the trade is determined by MtM, and the p&l varies each day with the market curve
  • Realized - delivery has taken place, the value of the delivered commodity is no longer relevant, and there is no uncertainty about the value of the trade

For much more information please refer to the Detailed Glossary