Seeking help on how to calculate P/L and entry of FX trades into my portfolio management sofware.
I have an account with IB in AUD base currency which is used for my FX trading.
Stator is a portfolio management application I use to enter trades for P/L calculations. The account profile in Stator is in AUD.
(entry) 09-Sept. BUY 19,598 (qty) AUD/USD @ $1.05280
In my IB statement it states the 'Base Currency Exchange Rate' for USD as $0.9564 for the 09-Sept.
(exit) 26-Sept. BUY 19,598 AUD/USD @ $0.9687
In my IB statement it states the 'Base Currency Exchange Rate' for USD as $1.0193 for the 26-Sept.
When I enter the FX trades above into Stator, I enter the 'Entry Exchange Rate as the value from IB's 'Base Currency Exchange Rate' $0.9687 and the Exit Exchange Rate as $1.0193. My question is: should I be using these exchange rates or simply use 1USD = 1AUD as my accounts are in the base currency of AUD. See Stator calculations below, normally I would record the trade as a loss of $1684.48. However, Stator adds exchange rates and records a total loss of just $386.57. What should I be reporting as my real P/L on the trade above?
Stator calculates the following:
AUD$ P/L (Trade) -$1684.48
+ AUD$ P/L (Exchange Rate) $1297.97
= AUD$ P/L (Final) -$386.57