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Is my FX brokerage manipulating my profit margin to pay out less?

Personal Finance & Money Asked by AfroFX on June 2, 2021

USDCAD pair has moved 41.90 pips in my favour @ 0.01 lots (broker showing profit of $3.01)

USDJPY pair has moved 52.30 pips against me @ 0.01 lots (broker showing loss of -$4.85)

At $0.10 per pip (0.01 lot) the margin on:

  • USDCAD pair is (41.90 pips * $0.10 – $3.01 listed profit = 1.18) while
  • USDJPY pair is (52.30 pips * $0.10 – $4.84 listed loss = 0.39)

It seems my profit margins are calculated at a higher "spread" than my loss? Am I missing something here?

2 Answers

Maybe because you are comparing CAD with JPY and you need to factor in the exchange rate differential bwteen the two

Answered by user89995 on June 2, 2021

AH, one reason is that "open profit" is calculated on liquidation value, NOT on current price. At best with a market having bid and ask, it is using the worse of those numbers.

Answered by TomTom on June 2, 2021

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