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Discrepancies in amounts of P and L reported


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I have been disturbed to find the figures reported in my trading history do not" add up" when I have decided to realise a loss or take a profit . the dollar loss on  a same day trade of  for example buy 20 shares AMDfor $1162.40  and sell $ 1148.80 = loss of $13.60 shows as buy  £915.87  and sell £895.91 = loss £ 19.96.    ( Difference not accounted for by exchange rates of.$/£ 1.29 and 1.28.)

similarly bought50 shares WFC ave px $28 = $1400 s and sold for $1492.50 for profit $92.50 hows as buy for £1147.23 and sell for£1177.90 =profit shown of £30 instead of £70.

a prior much larger profit of over $200 on AECOM also not reflected in sterling balances.

I qualify for free trades so I would like explanation of where my GBP profits are to be found please. Thank you for your prompt response as I have been unable to reach you by phone. Namaste Susan Reed

 

 

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  • 6 months later...

Hi, stumbled across this while searching for something related. Did you get an answer from IG on this?

Assuming this is in your share dealing / ISA account, and you're on a GBP account; if you're buying US shares outright, your realised P&L when you sell them is gonna be [GBP sale amount - GBP purchase amount]. Not the [USD sale amount - USD purchase amount] converted to GBP.

Say you buy 1 US share for $120 @ GBP/USD 1.2, i.e. you spend £100 

If it then gains 20% your share is worth $144 so your USD p&l is $24

But say GBP/USD has also moved to 1.5

Your GBP p&l is [GBP sale amount - GBP purchase amount] = [($144/1.5) - £100] = £4 loss

Your GBP p&l is not $24/1.5 = £16 gain

It's a bit annoying because the live dealing platform will show your GBP p&l as the latter, under the list of open positions, which is misleading and incorrect. You only get the correct figure after sell the shares and work it out from your transaction history. This is something I've mean meaning to ask IG about.

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  • 3 weeks later...

Hi DoctorStrange & Susianna,

I just realised this today.  Came as a bit of a shock.  I had some ETFS I had purchased (in USD).  The "positions page" was telling me I was in profit.  However I also use a tool called sharesight for tracking all my trades and positions and it was telling me I was in loss.

You are right - the positions page is as good as useless for $ positions.  It works out your P/L based upon the $ price you paid and the current $ price for that stock.  It then calculates using today's exg rate what the P/L is.  It does not take into account the exchange rate on the day of the trade. 

This is as good as useless.  

It wouldn't be too bad if I could settle in USD.  But the platfrom forces me to settle in GBP.  So not only do I lose on the FX conversion between my buy and sell dates, I also incur the FX exchange fee. 

Did anyone ask IG and get an answer??

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I've  just turned on "manual" currency conversion which I have only just discovered.

This means for future trades I can settle in USD - and not be hit by an instant currency conversion. I can thus hold my "profit" in USD, trade again in USD and convert back to GBP when the FX rates swing back again.

They hide this setting in the My IG pages.  See screenshot.

It still doesn't solve the problem of the incorrect P and L.  But at least I now have the chance to hold USD until a more appropriate time.

 

currency conversion setting.png

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Guest SUSIANNA
On 31/12/2020 at 00:34, DoctorStrange said:

Hi, stumbled across this while searching for something related. Did you get an answer from IG on this?

Assuming this is in your share dealing / ISA account, and you're on a GBP account; if you're buying US shares outright, your realised P&L when you sell them is gonna be [GBP sale amount - GBP purchase amount]. Not the [USD sale amount - USD purchase amount] converted to GBP.

Say you buy 1 US share for $120 @ GBP/USD 1.2, i.e. you spend £100 

If it then gains 20% your share is worth $144 so your USD p&l is $24

But say GBP/USD has also moved to 1.5

Your GBP p&l is [GBP sale amount - GBP purchase amount] = [($144/1.5) - £100] = £4 loss

Your GBP p&l is not $24/1.5 = £16 gain

It's a bit annoying because the live dealing platform will show your GBP p&l as the latter, under the list of open positions, which is misleading and incorrect. You only get the correct figure after sell the shares and work it out from your transaction history. This is something I've mean meaning to ask IG about.

Many thanks for the explanation which helped me realise my lack of understanding!!! i have also been asking IG for access to a historical spread sheet of trades in and out of one share  showing p/L and must remember to ask for currency column also.. happy and prosperous New Year. Susan

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