Upside is the potential upward move in the price of an instrument, or the profit that move could produce. It measures how far a market, asset, or position could rise from its current price.
You assess upside by comparing the potential gain against the potential loss. If the expected upside is larger than the possible downside, the trade carries a stronger risk-reward profile. Upside is usually judged from price targets, resistance levels, the prevailing trend, valuation, momentum, or fundamental catalysts.
Upside is the opposite of downside. Upside is the room a price has to rise, while downside is the room it has to fall. Traders weigh the two together, because a large upside means little if the downside that comes with it is just as large.
A share is trading at USD 50, and you think it could rise to USD 60.
The potential upside is:
USD 60 - USD 50 = USD 10
That is USD 10 of upside per share, or 20%, before trading costs and before you weigh it against the downside.