How does MetaTrader 5 calculate profit? - page 10
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papaklass, I think the subject of this thread is "How does MetaTrader 5 calculate profit?". What does it have to do with the value of a tick?
One more thing: I don't believe this - Open a Buy position at point 1, i.e. buy EUR (Ask) and sell GBP (Bid).
I do not agree, I did not set the rules, I have already written how I see things happening:
*Deposit currency is USD
*We want to buy 1 lot EURGBP
*For this, we take from our broker an amount equivalent to EUR 100,000 in GBP
*Transform the amount in GBP to EUR at Ask price
*Time passes, we come out in GBP at Bid price
*We have a debt in GBP and we pay it off
*As a result we either have enough to give and remain or we don't have enough
*It is the penultimate item that determines at which price we call the deposit (Bid or Ask).
A request to MQ - please explain how cross trades are done.
I have explained for several pages. Please reread it from the beginning.
The only problem some people have with understanding is the conversion of the result to balance sheet currency. It's very simple there if you think about the physical nature of the conversion operation (redemption/sale).
to papaklass
1. As a result of the first item we have EUR (excellent)
2. In order to sell GBPUSD we need GBP, where did you get it in your USD deposit? So, you need GBP and you want to sell them ))))
3. In the end, we have EUR, but GBP is nowhere to be seen
4. Your scheme does not explain the logic of MT in any way
papaklass
I have no desire to take up clues (so you can replace your conclusions), write a normal scheme (without riddles), and then we will talk. And about the fact that I am drawing conclusions, so I have that right, my conclusions do not impose them on anyone.
The year was 2022. Spring was early, and by early March the rivers were free of ice and by the end of the year there was no trace of snow on the fields.
The mood was good, spring-like. Only one unfinished task kept haunting Papaklass. It was already tenth year.
Terabytes of correspondence with all the banks and brokers of the world were stored in the pantry along with tinned cucumbers.
And all for nothing.
They still haven't figured out how to change crosses.
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Autumn 2044 was as beautiful as ever. Bright explosions of colour on the leaves of the trees ....
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Autumn 2044 was as beautiful as ever . Bright bursts of colour on the leaves of the trees ....
papaklass
But by acting as you say (buying the base, selling the quoted one), we will pay the spread twice (for the full amount of the transaction). And in this implementation we will pay the spread on the full amount of transaction only once. Hence the conclusion that purely on transactions (up to the moment of depositing) we have saved the spread, in the amount of the whole transaction. I think this saving is much more significant than crediting via Bid or Ask (asthe case may be).
SZS: And I think it's pointless to deny the scheme I cited, saying I'm wrong. In all likelihood it is a fait accompli.
ZZZY: the only thing I have changed in my opinion - you cannot buy cross currency for a transaction (then the final profit will depend not only on the cross rate, but also on the USD/cross price), it can only be borrowed.