How is Forex P&L calculated

[klacken2]

Hi All

Sorry if this is a simple question but it has stumped me.

I am trying to set up an excel spreadsheet to deal with forex P&L.

But I have tried everything I can think of and am getting nowhere, so a little help really would be appreciated.

Let’s say I have two trades with GBP/NZD

I sell 3.00 lot at 1.95998

I close the trade at 1.65958

So a profit of 0.00040

But the IG metatrader system is showing this as USD $78.40



I buy 0.01 lot @ 1.97815

I close at 1.97523

So a loss of -0.00292

But the IG metatrader system is showing this as USD $-1.92



Can anyone give me a hint as to how they (IG) are calculating these P&L ?

Or, as I’m not bad at excel, a formula for it or a link to a site which can help create one.

Thanks

 

[cantagril]

I can't tell you about IG but I'd think you need to plug in a commensurate pip value, commission and swap rate.

 

[momo3HC]

I can't tell you about IG but I'd think you need to plug in a commensurate pip value, commission and swap rate.

Exactly.

 

[momo3HC]

Let’s say you hold an account where the base currency is USD. This is the way Calculating profit your p[rofits.
The current rate for EUR/USD is 0.9517/0.9522 (where 0.9517 is the sell price and 0.9522 is the buy price. The spread is 5).
Let’s say you decide to sell 10,000 EUR at 0.9517.
This means you sold 10,000 EUR and bought 9,517.00 USD (10,000 EUR * 0.9517 = 9,517.00 USD).
After you trade, the market rate of EUR/USD decreases to 0.9500/0.9505. You decide to buy back 10,000 EUR at 0.9505 (10,000 EUR * 0.9505 = 9,505.00 USD).
You sold 10,000 EUR for 9,517 USD and bought back 10,000 EUR for 9,505 USD.
Your profit is 12.00 USD (9,517.00 - 9,505.00).

Quite simple explained but not wrong. Don`t forget take out commissions or swap from the profit if there`re some like this.