The Daily Percentage Return includes realised (made from closing positions) and unrealised (increase in Account Value from changes in the price of open positions) profits, and capital gains and costs (including fees, dividends, coupon payments and other corporate action distributions).
The calculation for Daily Percentage Return, is based on the principles of the time-weighted rate of return and can be measured in comparison to the performance of a specified benchmark. To ensure that returns are not overstated, Saxo’s calculation for Daily Percentage Returns takes into account whether the net capital flows are positive or negative. Capital flows include all external cash flows and external security transfers e.g. when clients transfer securities into/ out of an Account or deposit/withdraw cash from an Account.
Positive Capital flow
Where net external capital flows are positive i.e. where the capital inflows outweigh capital outflows during the course of the trading day, then all capital flows are assumed to have been generated at the beginning of the day. Cash and security injections are assumed to have occurred at the beginning of the day and assumed to be available for use on the Account from the beginning of the trading day. Percentage return in this instance is calculated as:
Negative Capital flow
Where net external capital flows are negative i.e. where the capital outflows outweigh capital inflows during the course of the trading day, then all capital flows are assumed to have been generated at the end-of-day. Cash withdrawals and outgoing security transfers are assumed to have occurred at the end-of-day and assumed to be have been available for use on the Account until the end-of-day. Percentage return in this instance is calculated as:
The daily percentage returns are displayed in the Performance View.