Thread: IDEAL PRO is driving me nuts! Please help.

Originally Posted by ;

May I know what's the profit IDEAL PRO gave you?

Originally Posted by ;

I have gone over his numbers, and that I think he is drunk on walnut syrup (inside joke).

,
Please tell me that my past PMs were wrong, otherwise you could have me calling into question the entire mantra of 'German engineering'.

Hey, I am only half kraut.

And no one days are anyway long gone (if they existed).

Originally Posted by ;

So allow me to get this straight: you marketed EUR's and purchased USD. Brief from 1.48 something and shut out at 1.28 some thing and you have no P/L in your account?


How do you think funding in two different currencies influenced this transaction?

Above all what the F did IB inform you? Lets begin there...

The funding changed the commerce, since IB never gave me the option of using the USD base to fund the transaction (i.e. USD (base) EUR USD)

This really is a good way to describe it The P/L basically shows the profit I created from not holding EUR (past the entrance price). It is not a P/L which you can book by closing out the transaction and buying back the currency that you sold (EUR in this instance).

Originally Posted by ;

This is a good way to describe it : The P/L basically shows the gain I made with not holding EUR (beyond the entry price). It isn't a P/L that you could reserve by shutting out the trade and buying back the currency that you sold (EUR in this instance).

I believe I am becoming this (but probably not!)

So the 'trade' was actually a conversion of your 170k cash Euro equilibrium into USD in 1.46839 which gave you $249,626.30, and then you brought back your initial 170k Eur in 1.28839 which cost you $219,026.30, leaving $30,600 over. Assuming you didn't convert that $30.6k gain into Eur where is it now, is it in your USD account? I guess depending on where you believe Eur/Usd is headed, and what currency you are going to want for withdrawals, will choose whether you maintain Eur or USD. There has to be a way to permanently convert your account base currency if you wished to.

How are your Euro and USD account accounts receivable, are they two distinct accounts? Did you have a choice of which account you made the transaction on ie making it on the Eur cash balance account was a conversion, whereas the USD account would have been a leveraged trade (Eur being the trade base currency).

....what was the original question again, it is seems like a long time ago

Originally Posted by ;

....we haven't even delved into the issues of managed accounts or currency cross margins (these are entirely different stories altogether....

Agggghhhhhh....

Originally Posted by ;

Then I took a short spot on the EUR/USD at 1.4680 and just closed it out at 1.2880.

1800 pips profit * USD17.0317 each pip = USD 30,657.06 not adding any COMMISSION or NEGATIVE SWAP or whatever fees your broker fees for open positions.

What you've revealed deviates by USD60 just or about 0.1% that is due to the true price in which it was really closed @ 1.28838 as against the initially posted 1.2880.

IF you indeed received this USD30591.78 on your account then it's accurate.

So what is there to talk about?


(PS. I will re-read the entire thing and maybe I missed out something in the previous articles...)

Originally Posted by ;

BK,

Hav eyou heard of IB? We're not speaking about a few Muslim broker. I noticed in your example you forgot to talk about curiosity which would play a big part on PnL with a short EUR postion. Also, converting PnL to a base currency can impact pip values so there's a lot to go over. That is why I wish to listen to what IB must say.

PIP value is the only number where others follow.
It is the absolute ruler.

Ie, in the event that you made 100 pips, it's 100 pips regardless of currency pair you exchanged.
However, when switching into real currency (ie, USD, EUR, JPY) in which your account is funded, the guideline is:

Pip value * Value of the Currency on the Right size of the currency pair.
Example:
10 Pips profit on EURUSD = 10 pips * USD1.00 * amount of Mini Lots
10 pips profit on USDJPY = 10 pips * JPY100.00 * amount of Mini lots; if you would like to convert this into USD, then multiple it by the reverse of USDJPY.
Why did we use USD1.00 on the 1st example while we use JPY100 on the next?
Because, every pip value on xxxUSD pairs is 1/10000 while every pip in xxxJPY is in 1/100 or 100 times proceed than xxxUSDs. That is why we multiple it with JPY100 (rather than by JPY1.00).

Sold EURUSD @ 1.4680 and close it @ 1.2880 is a solid 1800 pips profit. This 1800 pips profit won't change no matter how many lots in this position or just how many days it was opened.

Some brokers fees swap by changing/Adjusting your open price (like Saxo) but the most important thing is (to prevent confusion), simply count the $$$ PnL.


BTW fxterrapin. I assume that your account was opened in EUR as it was originally funded in EUR and this was exchanged with 1:1 Leverage???

LOL! You left money shorting EUR, but dropped just as much because your account is currently in EUR!

1 Step Forward, 1 Step Backward

If this is really that circumstance, you ought to have physically marketed your EUR and bought USD and deposited precisely exactly the same on a bank. No Negative Swap no commission no dumb broker hassle.

Originally Posted by ;

PIP value is the sole number where all others follow.
It is the absolute ruler.

Ie, If you produced 100 pips, it's 100 pips regardless of currency pair you exchanged.
Nevertheless, when switching into real currency (ie, USD, EUR, JPY) where your account is financed, the rule of thumb is:

Pip value * Value of the Currency on the ideal size of this currency pair.
Example:
10 Pips profit on EURUSD = 10 pips * USD1.00 * number of Mini Lots
10 pips profit on USDJPY = 10 pips * JPY100.00 * number of Mini lots; if you would like to convert this to USD, then multiple it by the inverse of USDJPY.
Why did we utilize USD1.00 on the 1st case while we utilize JPY100 on the second?
Because, every pip value on xxxUSD pairs is 1/10000 while every pip in xxxJPY is in 1/100 or 100 times move than xxxUSDs. This is why we multiple it with JPY100 (rather than by JPY1.00).

Sold EURUSD @ 1.4680 and shut it @ 1.2880 is a solid 1800 pips profit. This 1800 pips profit won't change regardless of the number of lots in this position or how many days it had been opened.

Some brokers fees change by changing/Adjusting your receptive price (such as Saxo) but the most important thing is (to prevent confusion), simply count the $$$ PnL.


BTW . I assume that your account had been opened in EUR since it had been initially financed in EUR and this was exchanged with 1:1 Leverage???

LOL! You made money shorting EUR, but dropped just as much because your account is in EUR!

1 Step Forward, 1 Measure 1

If that is indeed that circumstance, you ought to have physically marketed your EUR and purchased USD and deposited precisely exactly the same on a bank. No Swap no commission no dumb broker hassle.

That is the Whole point. I DID convert it physically. This was the trade.

Originally Posted by ;

That is the whole point. I convert it physically. This was the trade.

So, in the long run, you didn't make any money and rather paid the broker for the swap and commissions as against depositing the same money into a bank (much safer than using a broker) and got interest safely.

1:1 leverage suck!

Originally Posted by ;

So, in the long run, you didn't make any money and rather paid the broker for the swap and commissions as against depositing the exact same cash into a bank (much safer than with a broker) and got interest.

1:1 leverage suck!

Incorrect. You are forgetting that the base was in EUR and has been for quite a while. In USD I'm worth more so far as I know there is not any US bank which manages multiple currencies.

And does 1:1 suck? Low leverage sucks??? No. The way IB manages it is accounting sucks.

Originally Posted by ;

So, ultimately, you didn't make any money and rather paid the broker for the exchange and commissions as against depositing the exact same cash into a bank (much safer than using a broker) and got interest safely.

1:1 leverage suck!

How did he not make any money, he made gt;$30k through converting than he'd have done not converting, or more accurately he is not missing 30k at the worth of his Euro against USD he'd have done if it was on deposit at a bank.