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The total profit/loss of a position in your account currency is defined as the total cash flow at the opening evaluated against the total (estimated) cash flow at closing. For a stock, this is the amount you receive when you sell your stocks (net of commission, exchange fee and tax) vs. the amount you originally paid for the stocks (including commission, exchange fee and tax). In case the stock is traded in a currency different from your account currency, fluctuations in the currency rate will affect the total profit/loss. |
In this article we cover the following topics:
Where do I find the position details?
To find the position details, start by selecting your client from the client tree and then navigate to the Portfolio section. Next, click on the three dots and choose "Positions Details."
Description of the 'Profit / Loss' details
Example showing the calculations for commission and market value:
Example showing the calculations for trade P/L, Conversion P/L, Total P/L (incl. costs):
Trade P/L is calculated as:
Open market value in NOK: -878.60 NOK
Close market value in NOK: 874.00 NOK
Trade P/L=open market value + close market value= -878.60+874.00=-4.60 NOK
Trade P/L (DKK) is calculated as:
Trade P/L (NOK): -4.60 NOK
open conversion rate: 0.71651808
Trade P/L (DKK)=Trade P/L (NOK)*open conversion rate=-4.60*0.71651808=-3.30 DKK
The conversion P/L is calculated as:
Open conversion rate: 0.71651808
Close conversion rate: 0.66729119
Close market value=874.00 NOK
Conversion P/L=(close conversion rate-open conversion rate)*close market value=(0.66729119-0.71651808)*874.00=-43.02 DKK
Total P/L (incl. cost) in NOK is calculated as:
Trade P/L (NOK): -4.60 NOK
Commission in NOK: open commission + close commission=0.31 NOK+0.31 NOK=0.62 NOK
Trade P/L (incl. cost) in NOK: trade P/L (NOK)+commission in NOK=-4.60 NOK+-0.62 NOK=-5.22 NOK
Total P/L (incl. cost) in DKK is calculated as:
Trade P/L (DKK) =-3.30 DKK
Commission in DKK: opening commission in DKK + close commission in DKK=0.22DKK+0.21 DKK=0.43 DKK
Conversion P/L: -43.02 DKK
Trade P/L (incl. costs) in DKK: trade P/L (DKK)+conversion P/L+ commission in DKK=-3.30 DKK-0.43DKK-43.02DKK=-46.75 DKK
The formula
Formally, total profit/loss can be expressed as:
Re-arranging the expression above (and skipping the algebra), we can express total profit/loss in your account currency as the sum of:
- Price fluctuations in the instrument > Trade profit/loss
- Currency fluctuations between your account currency and your instrument currency > Conversion profit/loss
- Commission, exchange fee, tax etc. > Cost loss
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