Recent Examples of paper profit from the Web
But the central bank can’t lock in these paper profits by selling chunks of their cache of foreign stocks and bonds without the risk of strengthening the franc, which could leave it vulnerable to future losses.
One trader has booked paper profits of more than $10 million after betting on this steepening of the curve on Wednesday.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'paper profit.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
First Known Use of paper profit
Financial Definition of PAPER PROFIT
What It Is
Paper profit refers to the amount you would gain on a security if it were sold.
How It Works
For instance, if a bond were purchased at $600 and the current market price is $1,200, the paper profit would be $600 ($1,200 - $600 = $600).
Why It Matters
The paper profit on a held security can be calculated at any point. This can be helpful to investors as they consider selling certain assets as part of their portfolio strategy.
When making a decision on your potential profit or loss, it's important to consider any fees or taxes you may incur as a result of selling.
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