Hi there, this is my first post/thread, so I’m not sure if this is the right forum’s section to post it ! =)
I have doubts regarding the proper calculation of profits and losses.
I’ve put together an excel spreadsheet in order to have them calculated, but unfortunately it does not seem to reflect reality when I compare it to my MT4 terminal demo account history…
I’ve attached the spreadsheet as well as a screenshot of the MT4 terminal.
According to the terminal, the trade’s profit was US$ 194.00. However, when I calculate it in excel, the trade’s profit should have been US$ 19.40.
Am I doing something wrong ? Is my calculation wrong ? Or the MT4 terminal has not been properly set up ? I’m running this demo account from “The Collective FX” broker.
According to their FAQ, “The Collective FX sets margin in terms of required margin per lot. The maximum margin available from our Interbank Liquidity providers is 1% or 100:1 and therefore this is the maximum margin level that we are able to make available to you. For simplicity The Collective FX requires $100 in your account for each and every mini lot, and $1000 for each and every full lot, regardless of the pair traded.”
Gray cells are the inputs. Beware that there are 2 selectable menus (light blue) to make it easier…
Without even looking at the attachment I have to say it looks like the difference between a full lot and a mini, or a mini and a micro. Meaning your position sizes aren’t equal in the comparisson.
Also, could you please explain further what u meant ? Thanks.
The terminal says $194. Your spreadsheet says $19.40. That means the terminal is using a trade size 10 times as large as the one you’re using in your spreadsheet. Make sure you’re using consistent sizes between the two.
I know, I realized that before even posting this issue here…
However, I can not find at the spreadsheet what could possible be wrong… i.e. where would I increase a zero, to make it 10 times as big as it is right now, as I believe all the data IS accurate as it is right now.
There are not macros, only regular, simple and straight-forward formulas implemented, so I believe it’s the data I’m using, since it is that simple…
I just can’t figure it out… Aaaaaaahhhhhhhhhhhh, I’m starting to get frustrated… hehe…
As best I can tell your spreadsheet is correct. A 9.7 pip move on a mini contract would be worth $9.70, so two contracts would be $19.40. Are you sure the platform is showing trades in minis and not standard lots? That’s the only thing that makes the difference make sense to me.
Seperately, keep in mind that the units on a position are in terms of the base currency in the pair. That means a mini lot of EUR/USD is 10,000 EUR, so you’re position value isn’t $10,000. It’s 10,000 x EUR/USD.
[QUOTE=lrcaste;131632]
However, I can not find at the spreadsheet what could possible be wrong… i.e. where would I increase a zero, to make it 10 times as big as it is right now, as I believe all the data IS accurate as it is right now.
QUOTE]
Increase the [B]“Mini-lot’s amount (volume)”[/B] cell from 2 to 20 and it gives you $194.00 in profit matching up with your MT4 statement. The MT4 statement indicates to me that you are trading 2 standard lots and not 2 mini lots.
A volume of 2.0 can vary from broker to broker depending on how the account is setup to either indicate 2 mini lots or 2 standard lots.
How do you know it’s a standard account just looking at the MT4 statement ?
And I’m not sure if this is the issue, as at the buy/sell order screen, the maximum volume I’m allowed to choose is 8, there is no option for more than that (i.e. “20”).
I know this adjustment would make my spreadsheet works fine, but it woudn’t reflect reality I guess… :rolleyes:
The problem is that the spreadsheet doesn’t reflect reality to begin with
What I should have said in the previous post is that 2.0 on your MT4 account probably represents 2 standard lots rather than 2 mini lots.
You can tell whether it’s a mini or standard lot by the pip value. If your pip value is $2 then it’s 2 mini lots. If the pip value is $20, then it’s 2 standard lots. Divide your $194.00 by the number of pips you made on the trade and it will give you the pip value.
