We provide several different profit and loss (P&L) and price calculations shown below.
Daily P&L (shown in base currency): ((Position Now * Current Market Price) - (Position * Price at Reset Time) + (Net Traded Amount) ) * Daily exchange rate to the base currency. This value shows the change in the market value of your open position relative to a reset time (details below). Please note that Daily P&L uses the time zone of the specific instrument, and does not consider your local time zone.
- Reset Time:
- For instruments that open and close the same day, ResetTime is five minutes before midnight in the time zone of the instrument.
- For instruments that open today and close tomorrow (trade through midnight), Reset Time is five minutes before it opens for trading in the time zone of the instrument.
- Net Traded Amount is the profit or loss amount that opened and closed the same day.
Example (with Reset Time): A client owns 100 shares of stock XYZ, which was purchased for 100 USD on Monday. The price at 11:00 pm for these shares is up to 110.00 USD, so the daily P&L on the account is now up by 10 x 100 = 1,000 USD. The P&L then resets at midnight. On Tuesday, when the market opens, XYZ is trading at 100 USD. If the marked price used is 110.00, then the daily P&L is -1,000 for Tuesday. This is true despite the fact that the client did not lose money on the trade since he paid 100 and the shares are trading at 100.
Unrealized P&L (shown in base currency): (Current Mark Price - Average Price) x total number of shares. This value shows the change in the market value of your open position compared to the cost basis.
Realized P&L (shown in base currency): ((Exit Execution Price x number of shares) + commission) - ((Entry Execution Price x number of shares) + commission). This value shows your actual profit or loss on closed positions.
Average Price (shown in the security's local currency): The average price is calculated by dividing your cost (execution price + commission) by the quantity of your position. This value shows the average per-share price paid for a position.
Cost Basis (shown in base currency): Purchase cost + commission + transaction taxes and other charges.
Notes:
- Your trading platform will always show P&L in FIFO (First In, First Out). Your statement will show P&L using whatever tax basis you have selected in Tax Optimizer.
- If you have multiple opening or closing trades for a product denominated in a currency other than your base, you will need to pull up a Daily Statement to see that day's exchange rate. The Base Currency Exchange Rate section will not appear in a multi-date statement.