How is the Profit/Loss in Performance Summary calculated?

Discussion in 'Interactive Brokers' started by iPittyTheFool, Dec 11, 2019.

  1. I'm currently analyzing my Activity Statement, especially the Realized Performance Summary and I came across some Profit/Loss positions I just cannot explain.

    For example I bought BLX on serveal occasions and had one sell:

    Date # Price Fees Eur/Usd Rate
    2017-08-25 100 Buy 26.6692 1.0000 1.1874
    2018-02-12 50 Buy 27.7650 1.0000 1.2263
    2018-09-10 50 Buy 20.7550 1.0000 1.1603
    2018-11-12 100 Buy 17.7050 1.0000 1.1240
    2018-12-21 100 Buy 17.5000 0.0000 1.1399
    2019-03-15 100 Buy 20.0000 0.0000 1.1334
    2019-04-18 100 Sell 20.0000 0.0000 1.1251


    The base currency of my account is in Euro, therefore the exchange rate of the respective dates.

    Moreover I bought the last two positions via puts and the sell was executed by a covered call:

    Expiration Strike Premium Fees
    2018-12-21 Put 17.5000 40.00 0.29
    2019-03-15 Put 20.0000 25.00 0.24
    2019-04-18 Call 20.0000 65.00 0.34


    In the Performance Summary however I see a loss of -537.11 EURO.

    I tried calculating the profit/loss using different methods: first-in-first-out, last-in-last-out and the average price. I also tried including the premiums of the options. No matter how I do the math, I just don't come up with that amount.

    Can anyone tell my how the calculations are done?
     
  2. tommcginnis

    tommcginnis

    Find this out *before* you trade, not after.

    If you're not sure (or to provide some proof-of-concept), hit the paper-trade.

    NEVER use a live account to pose questions you can't afford to answer with bad news.
     
  3. You completely misunderstood my question. I'm absolutely content with all trades I've done.
    Moreover my position with BLX is doing pretty well (especially including all the dividends and premiums).

    What I don't understand is how IB is calculating the profit/loss values. For example, if I use the first-in-first-out method, I'd take these two trades:

    2017-08-25 100 Buy 26.6692 1.0000 1.1874
    2019-04-18 100 Sell 20.0000 0.0000 1.1251

    P/L = (sell-price) - (buy-price)
    = (20*100)/1.1251 - (26.6692*100 + 1)/1.1874
    = 1777.6197 - 2246.8586
    = -469,2389

    Not even near the -537,11. Same thing with the average price:

    Average buy price per share in EURO = 18.3017

    P/L = (sell-price) - (avg-price * 100)
    = 1777.6197 - (18.3017 * 100)
    = -52,5503

    The difference is even worse.

    To sum it up again: I have no problem with my trades. All I want to know is the formula, that IB is using to calculate the P/L statements. In detail:
    What buy price is taken into account?
    What currency conversion rate should I take?
    Do I have to consider the premiums of the options that were executed?
    etc.