The overall purchase amount in USD is therefore calculated as follows:ĥ (units) x 8.80 (price per unit) x 1.3 (the GBPUSD FX rate) = $57.2.

John wants to buy 5 units of ABC, which is a UK stock, quoted on the London Stock Exchange and denominated in GBP.

When you close a non-USD-based position, your final P/L is calculated using the FX rate at that moment. This is because, if the corresponding forex market is still open, the P/L will fluctuate according to those exchange rate movements.

Even if the market is closed (out of hours), you may notice that the P/L of your non-USD-based asset continues to change. The P/L of your non-USD based assets will change not only based on the asset price, but also the current FX rate. In this situation, the P/L calculation is identical to what we’ve previously reviewed, but with one key difference: the FX rate is no longer “1.” Using our formula, the P/L of this position will be calculated as follows:Īs we explained earlier, when you open a position with a non-USD-based asset, you are exposed to the FX rate between the asset’s base currency and the US dollar.In time, the price of XYZ increases to $130 per unit.John buys 2 shares of XYZ stock, which costs $240 ($120 per unit).

After conversion, John has $13,000 in his account. Assume the FX rate for GBP is 1.3 USD (including any FX conversion fees). John in the UK deposits £10,000 (GBP) into his investment account.For closed positions, the P/L has been finalised and will no longer change. No matter where you are in the world, this holds true.įor open positions, this P/L number will fluctuate in line with the changing price of the asset. Since these positions are USD based, there is no currency exchange involved in our calculation (i.e., the FX rate is “1” in the above formula). Simply put, the P/L value of any USD based position is calculated by subtracting the opening price from the current price (or closing price) and multiplying by the number of units. Note, if the trade is in the opposite direction (in the case of selling short), the calculation is multiplied by -1. FXt1 = Foreign currency exchange rate between the asset’s base currency and USD at the time the position is first opened.Pricet1 = Price per unit upon viewing or closing a position.Pricet0 = Price per unit upon opening the trade.With this in mind, let’s look at our formula for calculating P/L (note that the formula applies to all assets on the eToro platform – CFDs, physical stocks/ETFs and physical crypto): In such cases, when you open a position, it (specifically the P/L) is exposed to the fluctuation in the FX rate between the US dollar and that currency. For example, German stocks are based on Euros. Many assets on the eToro platform are based on different (non-USD) currencies, however. This is because your eToro investment account is also USD based. Many assets such as crypto, CFDs, and US stocks are USD based, resulting in no further currency (FX) exposure (in regards to the way in which your P/L is expressed within your eToro account). When you make a deposit, funds are converted from your local currency to USD (subject to FX conversion charges). This means that every trade you make and the profit or loss (“P/L”) of all positions you hold with us are valued in US dollars. It is important to note that your eToro investment account is USD based. Just check the “P/L” columns on your portfolio screen to see how much your holdings have gained or lost. At eToro, we make it easy for you to see how your investments are performing.

Potential stock profit calculator