The conversion rate allows us to accurately calculate the profit/loss that can be realized when opening a position. Below are two examples of calculating profit based on the conversion rate.
Conversion on MT5 accounts
If your account currency matches the base currency
(e.g. USD account trading USDCHF):
• Use the bid price for profitable orders because you sell the profit currency for your account currency.
• Use the ask price for losing orders because you buy the profit currency using your account currency.
Example 1: Sell order with profit
You close 0.3 lots of USDCHF with a profit of 50 CHF at 0.87705/0.87713. Since your account currency is USD, you need to convert 50 CHF to USD. For a profitable sell, you use the bid price (0.87705).
50 ÷ 0.87705 = 57.009 USD
Example 2: Buy order with loss
You close 0.3 lots of USDCHF with a loss of 50 CHF at 0.87705/0.87713. Since your account currency is USD, you must buy back 50 CHF using USD. For a losing buy, you use the ask price (0.87713).
50 ÷ 0.87713 = 57.004 USD
If your account currency does not match the base or quote currency
(e.g. USD account trading GBPCAD):
• The system uses a currency pair that contains the trade’s quote currency and your account currency for conversion.
• The bid price is used for profitable orders, and the ask price is used for losing orders.
Example 1: Sell order with profit
You close 1.5 lots of GBPCAD with a profit of 50 CAD at 1.86066/1.86116. Since your account currency is USD, you must convert 50 CAD to USD. Because GBPCAD doesn’t include USD, you use USDCAD at 1.48466/1.48484 (the prices at the time of closure). For a profitable sell, apply the bid price (1.48466):
50 ÷ 1.48466 = 33.678 USD
Example 2: Buy order with loss
You close 1.5 lots of GBPCAD with a loss of 50 CAD at 1.86066/1.86116. Since your account currency is USD, you must buy back 50 CAD. Because GBPCAD doesn’t include USD, you use USDCAD at 1.48466/1.48484 (the prices at the time of closure). For a losing sell, you use the ask price (1.48484):
50 ÷ 1.48484 = 33.674 USD
Conversion on MT4 accounts
If the account currency is the same as the base currency:
The closing price is used to convert the calculated profit/loss to the account currency.
If it is a buy order, the closing bid price is used, and for a sell order, the closing ask price is used.
- A GBPUSD buy order has the account currency of GBP.
- Prices at the time of closing for GBPUSD are 1.29123 / 1.29135.
- Profit is 50 USD.
50 / 1.29123 = 38.72 GBP
Profit in account currency = 38.72 GBP
If the account currency does not match your base or quote currency:
The system uses the price of a currency pair that involves your trade’s quote currency and your account currency to make such a conversion.
If it is a buy order, the closing bid price is used, and for a sell order, the closing ask price is used.
You open a sell order in EURUSD and your account currency is CAD. The profit/loss calculated in USD will need to be converted to CAD using the USDCAD ask prices at the time of closing. The price choice will depend on the order type.
- USDCAD closing price: 1.25443/1.25468
- Profit of order EURUSD Sell: 50 USD
Therefore, the profit in the account currency using the conversion rate is:
50 × 1.25468 (ask price) = 62.74 CAD
Profit in account currency = 62.74 CAD