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Dumb Forex Question, flex your knowledge, Dumb Forex Question, flex your knowledge
early birds
post Posted: Aug 4 2021, 12:51 PM
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In Reply To: mrsiddle's post @ Aug 4 2021, 11:48 AM

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! tongue.gif




 
mrsiddle
post Posted: Aug 4 2021, 11:48 AM
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In Reply To: mrsiddle's post @ Aug 4 2021, 10:53 AM

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.

 
mrsiddle
post Posted: Aug 4 2021, 10:53 AM
  Quote Post


Posts: 2


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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