What does unrealized gain / loss mean

An unrealized gain or loss refers to the change in the value of an investment since an investor purchased it, but has not yet sold it and realized the gain or loss as a cash transaction. The term "unrealized" indicates that the gain or loss is currently only a paper profit or loss and has not been converted into actual cash through the sale of the investment. To calculate unrealized gains and losses, an investor subtracts the asset's value at the time of purchase from its current market value. If the resulting amount is positive, there is an unrealized gain. If it is negative, there is an unrealized loss.