During trading, if the settlement currency (quote currency) of the instrument you trade differs from your account’s base currency, the system will automatically perform currency conversion at closing to accurately record your profit and loss. Below are the details:
1. Why is currency conversion necessary?
In Contracts for Difference (CFD) trading:
Trade profit and loss is typically calculated in the instrument’s settlement currency (quote currency);
But account profit and loss must ultimately be displayed and settled in your account’s base currency;
Therefore, the platform automatically converts P&L into the account currency at closing.
2. How is profit and loss calculated and converted?
At closing, the platform follows this logic:
Determine the P&L settlement currency
For forex: P&L is calculated in the quote currency (e.g., EUR/JPY P&L in JPY)
For commodities/indices: settled in the instrument’s quote currency (e.g., GER40 in EUR)
Identify the account base currency
The currency used for account balance display and deposits/withdrawals (e.g., USD)
Convert using the closing exchange rate
Automatically converted using the platform’s real-time market rates (floating)
3. Examples
Example 1: Trading EUR/JPY, account currency USD
Profit: 15,000 JPY
Closing rate USD/JPY: 150.00
Conversion: 15,000 ÷ 150 = 100 USD profit
Example 2: Trading GER40 (German index), account currency USD
Profit: €200
Closing rate EUR/USD: 1.10
Conversion: 200 × 1.10 = 220 USD profit
4. How can I view conversion details?
You can view conversion results and details on the platform:
Open the MT5 platform
Click Terminal at the bottom > Account History
Find the relevant order, right-click > Save as Detailed Report
Check the Profit field and settlement currency
(Some platforms support showing the actual conversion path)