How does MetaTrader 5 calculate profit? - page 8
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This is how I see it:
ZS: waiting for stones )))
Yeah, well, now I see the logic (yours and Renate's logic). If we need to put GBP profit to deposit, we should sell GBPUSD.
The key issue here is whether we make a margin call in the currency of the deposit or in the currency of the base pair.
Yeah, well, now I see the logic (yours and Renate's), if we need to transfer GBP profit to the deposit, we sell GBPUSD, but if we need to cover the deficit, we buy the missing funds from the deposit, for which we buy GBPUSD.
This variant of interpretation is clear. But it is not the only one. In practice the brokers (all together) give "virtual" exchange rates, while the real exchange takes place through the majors.
// In this case, the real exchange takes place through major.
I have drawn 2 conclusions for myself from the thread. Profitable:
(1) trade physically only on major (in case of virtual trading on crosses, if the total spread of the major is not higher than crosses spread. usually not more)
(2) keep the deposit in quid only, so as not to lose on additional conversions.
;)
Dear Renat,
I too have asked two simple questions. Would you be kind enough to answer them, please?
Вы твердите то, что всех других брокери, который имеют собствени платформи, всех они не понимают трейдинг и работают напротив себя ?!?!
How serious can you say that?
If possible, please tell me who exactly explained this method of calculation to you. I would like to know the company's name, but not a specific person, of course.
Dear Renat,
I too have asked two simple questions. Would you be kind enough to answer them, please?
Unfortunately, you have consumed too much of my time by claiming a calculation error. I hope you have understood the reason for your misconceptions.
I am not going to waste any more time on this issue.
And Manov is right, indeed some unhealthy scheme turns out, now I will try to argue. Just one question, Renat, please tell me if this is how MT5 works:
*Deposit currency USD
*We want to buy 1 lot of EURGBP
*For this we take from the broker an amount equivalent to 100 000 EUR 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).
?
Consider two cases (in both cases the objective is to sell 250 GBP units):
Given:
Case #1 (this is how MT works now (my suggestion))
Case #2 (Let's assume the situation where we don't borrow GBP, but use USD only from the deposit)
Just in the first scheme, leverage makes no difference, because when you exit a position, the flies are separate and the cutlets are separate.
But in the second case all funds are recalculated at exit through the rate, and then the balance is accrued, so at such a difference between bid and ask such a loss.
So in general Renat is right, the first scheme is more profitable for a trader, DT does not lose anything (since in the second scheme the trader's loss is not the profit of DT but the market profit) and so the first scheme deprives the market (if I may say so) of double taxation.
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In the first scheme leverage makes no difference, because when you exit a position, the flies are separate and the cutlets are separate.
But in the second case, all funds are recalculated through the exchange rate, and then the balance is accrued, so with such a difference between bid and ask such a loss.
In general, Renat is right, the first scheme is more profitable for trader.
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But then the essence of leverage is lost, we will always be borrowing the whole amount from the broker, it kind of makes me uneasy.