mrsiddle Posted August 4, 2021 Share Posted August 4, 2021 I've got a question regarding calculating P/L for a given forex pair. When calculating floating P/L, you are given an amount in terms of the quote currency for a given pair. When converting this back into the base currency of the same pair, do you use the bid or ask price, and why? Algo related because I'm building a back tester and this is confusing me. Link to comment Share on other sites More sharing options...
mrsiddle Posted August 4, 2021 Author Share Posted August 4, 2021 I've got a question regarding calculating P/L for a given forex pair. When calculating floating P/L, you are given an amount in terms of the quote currency for a given pair. When converting this back into the base currency of the same pair, do you use the bid or ask price, and why? Algo related because I'm building a back tester and this is confusing me. Link to comment Share on other sites More sharing options...
early birds Posted August 4, 2021 Share Posted August 4, 2021 just my thoughts, not some rulls or anything . AUD/USD------ the profit will rest on USD [secondary currency], so when you convert the P/L to AUD then your broker will charge you the spreads for USD/AUD . but it just for your P/L parts that is my understanding. not sure if it can help! Link to comment Share on other sites More sharing options...
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