FX net P&L: trade currency to account currency

How Cross-Currency P&L Conversion Affects International Traders

When you fund a brokerage account in GBP, EUR, AUD, CAD or INR and trade USD-denominated stocks, commodities or forex pairs, every profit, loss and commission is first realized in the instrument’s quote currency and then converted back into your home currency. Enter your gross trade P&L, round-trip execution cost and conversion rate above to see exact net profit in both currencies.

How the conversion works

Most international instruments settle in their own currency: US shares and most crypto pairs in US dollars, European shares in euros, a USD/JPY trade in yen. Your broker turns the result into your account currency at some point, either straight away or when you withdraw, and often adds a conversion fee of its own on top of the market rate.

Worked example

A trade on a US stock makes $250 gross and costs $8 in commissions, so the net result is $242. Your account is in Indian rupees. At an example conversion rate of 88.00 rupees per dollar, you receive $242 × 88.00 = ₹21,296. If the rupee strengthens to 86.00 before the money is converted, the same trade is worth ₹20,812, about ₹484 less, even though nothing about the trade itself changed.

Which rate to use

• For planning: a reference rate such as the European Central Bank rate on the markets page is fine.
• For your records: use the rate on your broker’s statement, because that is what actually happened to your money.
• For tax: many countries set their own rules for which exchange rate to use when you report foreign gains. Check the rules where you live or ask a tax professional.

Currency moves can add to or take away from a trade’s result. If you hold positions in a foreign currency for a long time, the exchange rate can matter as much as the trade.

Frequently asked questions