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Dumb Forex Question, flex your knowledge


mrsiddle
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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.

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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.

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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! :P

 

 

 

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