Monitoring Unrealized P&L is essential for evaluating the current state of a portfolio. By understanding the real-time profitability of open trades, traders can respond quickly to changing market conditions, adjust position sizes, and refine risk management strategies. Unrealized P&L helps traders maintain a balanced portfolio, identify opportunities to lock in profits, and ensure their strategies remain aligned with their financial goals. Properly tracking this metric supports better decision-making and improved long-term performance.