How does MetaTrader 5 calculate profit? - page 7

[Mykola Demko]

220Volt 2012.03.20 15:03 #

Urain, I think there is no point 2.

If you have a different deposit currency from the base of the pair then point 2 will be there even if you don't see it, otherwise how will you get a profit to your deposit.

sergeev

No error, but you have only considered one option after point 4 - you have a profit on EURGBP

and it is better to consider the process on points 7-6-5. You can see what you have had - profit or loss.

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Renat

Simplify the situation to the result of +10 GBP and -10 GBP, for all the preceding has nothing to do with the final stage of calculation.

You only need an answer on how exactly the final GBP -> USD conversion is done. And the answer is very simple, but some people confuse themselves with reasoning about previous operations.

I deliberately walked away from profit/loss concepts and merged this calculation already at the stage of depositing.

Since I haven't made any preliminary calculations, i.e. I haven't checked if the deal was profitable, it unifies the results for any deal.

OK, I'll throw in a script for the calculation...

[[Deleted]]

I think this is where you are wrong: "If your deposit currency is different from the base of the pair, then point 2 will be there even if you don't see it, otherwise how will you be credited with the profit to your depo. You are not buying with your own money, during the transaction your own only as a deposit. Conversion to the currency of the deposit will only be made when the transaction is fully completed and the loan is paid out.

[Vladimir Gomonov]

220Volt:
Urain, I don't think there is a point 2.

Of course there is. Otherwise it would be that we are in fact trading EURUSD. With two losing conversions through the pound.

[Mykola Demko]

MetaDriver 2012.03.20 16:15 #

220Volt:
Urain, I think there is no point 2.

Of course there is. Otherwise it would turn out that we're actually trading EURUSD. With two losing conversions through the pound.

Sorry, the reply function isn't working. I have to use the quote.

Are you saying that profit conversion into the deposit currency is done by DC at its own expense?

ZZY Judging by the extended spreads on crosses, I would even say that DTs do not conduct any cross operations at all, I count everything through the majors.

[[Deleted]]

Urain, could you sketch out an example? I'm not quite sure what you mean.

[Vladimir Gomonov]

Urain:

Sorry, the reply function isn't working. I have to use the quote.

Are you saying that conversion of profit to the currency of deposit is done by brokerage companies at their own expense?

That's what it's all about. It depends on the interpretation.

If we interpret the spread on the cross by the "all-inclusive" principle, then the conversion for the trader should be free. (More precisely - paid for when trading cross).

If the spread on the cross is "independent" - then Renat is right, and we have to convert at the exchange rate (without the leverage itself).

[Mykola Demko]

Urain 2012.03.20 16:24 #

For example, we have a lot of money in the market, but we have not got a single one, so we have to make a decision.

MetaDriver 2012.03.20 16:32 #

That's what it's all about. It depends on the interpretation.

If you interpret the cross spread as "all inclusive", then the conversion should be free for the trader. (more precisely - paid when trading cross).

If the spread on the cross is "independent" - then Renat is right, and we must convert at the rate (without the leverage).

This is the question I want to know the 100% correct answer to, and then we will have an example.

[Vladimir Gomonov]

Urain 2012.03.20 16:24 #

ZZY Judging by the extended spreads on crosses, I would even say that DTs do not conduct any cross operations at all, they calculate everything through majors.

Urain:

If only we had the 100% correct answer to this question, we may get an example.

I said the same thing in my previous post.

[Mykola Demko]

It turns out that Renat is right because that is how the calculation is calculated in the MT, the formula for which he set up the calculation.

In other words, the question is not "who is right or wrong", but "how legitimate is this approach".

The answer to this question stems from the answer, but at what rate does DC convert profit from the current currency to the currency of the deposit?

After all, there are two prices when converting.

[[Deleted]]

This is how I see it:

• Deposit currency USD

• We want to buy 1 lot of EURGBP
• To do this, we take from our broker an amount equivalent to 100,000 EUR in GBP
• We convert this amount in GBP to EUR at Ask price.
• Time passes, we exit in GBP at Bid price
• We incur a debt measured in GBP, so we pay it off
• As a result, we either have enough to give and remain, or not enough
• It is from the penultimate item depends on what price we will apply to the deposit (Bid or Ask)

ZS: waiting for stones ))