How does MetaTrader 5 calculate profit? - page 6
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Someone on the internet is wrong)) sorry, couldn't resist.
You have to do the calculations for comparison for one closing time.
Suppose spread=20.
That should work out something like this.
This is a violation of the physical sense.
You are wrong to link the type of initial transaction to the second conversion transaction. Once the result of the initial EURGBP transaction is received, the type of the previous transaction is irrelevant for the subsequent conversion operation.
You asked two questions wrong, I'll answer:
Manov, let's make it simple. You made a bet with a friend on the outcome of a football match between the teams of Spain and Italy.
You have to pay back your losses in Euro, for that you have to exchange Bulgarian lev to Euro in Exchange - so you have to buy 10 Euro for X lev.
You can exchange your winnings in an exchange office for Y BGN. Do you agree that X = Y ? If you owe, you buy at a higher price. If you make a profit, you sell cheaper. And all this at a currency exchange office.
Manov seems to accept a currency pair as an indivisible commodity, but in reality it is a back and forth exchange of TWO commodities (when the deposit currency is the same as one of the two currencies in the pair). The misunderstanding is compounded when a third type of commodity is on hand and a back and forth exchange transaction of TWO other commodities (when the deposit currency does NOT match either of the two currencies in the pair) needs to be performed.
"I think so!" (c)
To be honest I myself am confused in your (Renat & Manov) reasoning, so I will try myself, in order and publicly. Who will notice a mistake, correct me.
We have the deposit currency USD, and currency cross EURGBP (GBPUSD is considered).
We need to execute a chain of operations from USD to EUR (via GBP) and back.
1 So, make a margin call in USD (now we have N money to trade in majors + depo in pledge)
2 buy GBP for USD at ASK GBPUSD rate (now we have money to trade crosses for GBP)
3 buy EUR for GBP exchange rate ASK EURGBP (so we are happy owners of EUR with obligation to sell it for GBP in some time)
4 timescrolling (time scrolling, changing quoted prices).
5 sell EUR, in other words buy GBP for EUR (holding GBP) exchange rate BID EURGBP
6 sell GBP, in other words buy USD for GBP (USD on hand) exchange rate BID GBPUSD, add them to the deposit and go to the debt repayment step
7 pay N USD (margin loan is paid off, shortage is paid from the deposit (in case of shortage we get a margin call), the profit is added to the deposit).
Note: in the case of EURGBP sale transaction, steps 3 and 5 are skipped as we just stay in the base currency of the cross.
PS And now a question: is there a mistake in this reasoning?
PS Now pay attention to the question: is there an error in this reasoning?
there is no error, but you have only considered one option after point 4 - you have a profit on EURGBP
and it is better to consider the process by points 7-6-5 on the contrary. This is where you will see whether you have made a profit or a loss.
Urain:
PS Now pay attention to the question: is there an error in this reasoning?
Simplify the situation to a result of +10 GBP and -10 GBP, for all the preceding has nothing to do with the final calculation.
What is needed is an answer to exactly how the final GBP -> USD conversion takes place. And the answer is very simple, but some people confuse themselves with reasoning about previous transactions.