Notes

It is important to note that in what currencz your investment account is based. This means that every trade you make and the profit or loss (“P/L”) of all positions you place and close are valued in that currency. When you make a deposit, funds are converted from your local currency to zour account currency (subject to FX conversion charges).

Many assets such as crypto, CFDs, and US stocks are USD based, resulting in no further currency (FX) exposure if zou have a USD account (in regards to the way in which your P/L is expressed within your account). Many assets are also based on different (non-USD) currencies, however. For example, German stocks are based on Euros. In such cases, when you open a position, it (specifically the P/L) is exposed to the fluctuation in the FX rate between the your base currency and that currency you trade.

With this in mind, let’s look at our formula for calculating P/L (note that the formula applies to all assets on the platform – CFDs, physical stocks/ETFs and physical crypto):

P/L = (Pricet1 – Pricet0) x N x FXt1

Where:
Pricet0 = Price per unit upon opening the trade
Pricet1 = Price per unit upon viewing or closing a position
N = Number of units
FXt1 = Foreign currency exchange rate between the asset’s base currency and currency set on the platform at the time the position is first opened
Note, if the trade is in the opposite direction (in the case of selling short), the calculation is multiplied by -1.