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Crosses Order P/L Calculating Understanding
davydai
 Post subject: Crosses Order P/L Calculating Understanding Post rating: 0   New post Posted: Sun 24 May, 2015, 15:26 
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From my backtesting report:
Label Amount Direction Open price Close price Profit/Loss Profit/Loss in pips Open date Close date Comment
EURGBP_1 0.042094 SELL 0.78446 0.78472 -16.56 -2.6 2015-01-07 07:16:30 2015-01-07 07:23:47

The P/L without commission is -16.56. The GBPUSD Ask price is 1.51398 on the close date, and the GBPUSD Bid price is 1.51428 on the open date.

The report P/L is calculated by 0.042094 * 1e6 * ( 0.78446 - 0.78472) * 1.51398 = -16.5697, not by 0.042094 * 1e6 * ( 0.78446 * 1.51428 - 0.78472 * 1.51398) = -6.6633.

As my understanding for the trading process, selling EUR with [email protected] will get 0.042094 * 1e6 * 0.78446 * 1.51428 = 5.00031295e4 USD, then buying EUR with [email protected] will take 0.042094 * 1e6 * 0.78472 * 1.51398 = 5.0009792e4 USD. Thus, the loss is 5.00031295e4 - 5.0009792e4 = -6.6625.

I am confusing... :?
 
API Support
 Post subject: Re: Crosses Order P/L Calculating Understanding Post rating: 0   New post Posted: Mon 25 May, 2015, 09:07 
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Profit loss is actually translated into account currency only when position gets closed and profit/loss gets calculated.
 
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