When trading an instrument denominated in a different currency than the account currency an FX conversion will occur automatically.
If the instrument currency appreciates against your account currency you will profit, conversely, if the instrument currency depreciates against your account currency you will incur a loss.
You can find the applied opening rate and an indicate closing rate in the Position Details.
To calculate the Conversion P/L, shown in the position details, you need to do the following:
- Calculate the difference between the Open and Close conversion rate
- Multiply the current market value of the position (in the instrument currency) by the difference between the two conversion rates
Conversion P/L = (RateOpen - RateClose) * value of position.
Please see example attached.
Conversion P/L is calculated only for cash products: stocks, bonds, mutual funds, options