The Mark to Market (MTM) P&L for Forex represents the impact to the account value from FX rate changes when holding any cash or positions denominated in non-base currencies.
The 'Position' column is calculated each day relative to the prior day's ending net exposure in a non-base currency and the respective FX rate change. For reports spanning multiple days, this amount is still calculated for each day then summed to arrive at the total for the report period.
- Note that only the cash impact from futures is included, and not the notional value.
For example, an account with base currency of EUR has +150k in USD shares + 75k in USD bonds - 30k USD cash = +195k net USD exposure that will reflect P&L relative to any changes in the EUR.USD exchange rate.
The 'Transaction' column is calculated when FX conversions are performed and reflects the daily P&L relative to the amount converted and the difference in the trade price to the close price that day, as expressed in the base currency equivalent.
Additional Information
There is a substantial risk of loss in foreign exchange trading. The settlement date of foreign exchange trades can vary due to time zone differences and bank holidays. When trading across foreign exchange markets, this may necessitate borrowing funds to settle foreign exchange trades. The interest rate on borrowed funds must be considered when computing the cost of trades across multiple markets.