When trading equities, the return of a position is calculated with the following formula:
Return = Current Investment - Initial Investment or Return = (Current Price - Average Price) * Quantity
However, when dealing with instruments that have a different currency than the account currency, the FX exchange rate comes into play and affects the calculation of your Result:
Return = (Current Price / Current FX rate - Average Price / Average FX rate) * Quantity
All percentages are calculated in comparison to your initial investment. As the Gain/Loss tab takes into account the current FX rate, the percentage may exceed 100%. However, that is only used in order to visualize the impact of FX movements.
The values are calculated using the following formulas:
Gain/Loss = (Current Price - Average Price) * Shares / Current FX rate
Current FX rate = Current Sell Price in instrument currency/ (Investment / Number of shares)
If you’re trading 0.119462 shares of an instrument that has a current price of 64.4363 GBP, an average price of 60.7725 GBP, and a current FX rate of ~ 0.9345, your gain/loss will be as follows:
(64.4363 - 60.7725) *0.119462 / 0.9345 =0.4683
The current FX rate for the example has been calculated as follows:
64.3812 GBP / (8.23 USD / 0.119462) = 0.9345
The actual result of your position is shown in the ‘Return’ tab, not in the Gain/Loss tab. As it is impossible to lose more than your investment when trading equities, the ‘Return’ tab can never exceed -100%.
The actual return percentage of your investment is calculated with the following formula:
Return % = Gain/Loss % + FX impact %