IB's "Cash FX Translation Gain/Loss"

Discussion in 'Retail Brokers' started by datamerc, Dec 8, 2007.

  1. I have noticed that my IB statements now include a line item for "Cash FX Translation Gain/Loss". Can anyone explain what exactly this is. This line item has turned slightly profitable days into complete losers.

    Here is an example from my latest statement (of only forex trades):
    Code:
    Commissions -30.00 
    Net Trades 55.93
    Cash FX Translation Gain/Loss -60.92
    
    FOREX
    USD 
    EUR.USD 2007-12-07, 05:54:27 0.00 50,000 1.4634 0.0000 -73,167.50 -2.50 -0.00 0.00 0.00 O 
    EUR.USD 2007-12-07, 05:59:42 0.00 -50,000 1.4639 0.0000 73,195.00 -2.50 -0.00 0.00 0.00 O 
    EUR.USD 2007-12-07, 06:09:40 0.00 50,000 1.4636 0.0000 -73,180.00 -2.50 -0.00 0.00 0.00 O 
    EUR.USD 2007-12-07, 06:45:54 0.00 -50,000 1.4645 0.0000 73,225.00 -2.50 -0.00 0.00 0.00 O 
    EUR.USD 2007-12-07, 07:09:38 0.00 50,000 1.4642 0.0000 -73,210.00 -2.50 -0.00 0.00 0.00 O 
    EUR.USD 2007-12-07, 07:18:52 0.00 -50,000 1.4636 0.0000 73,180.00 -2.50 -0.00 0.00 0.00 O 
       Total ( EUR.USD )  0   42.50 -15.00 0.00 0.00 0.00   
       Total ( USD )     42.50 -15.00 0.00 0.00 0.00   
    JPY 
    USD.JPY 2007-12-07, 05:36:24 -2.50 50,000 111.4600 0.0000 -5,573,000.00 0.00 -0.00 0.00 0.00 O 
    USD.JPY 2007-12-07, 05:59:39 -2.50 -50,000 111.5050 0.0000 5,575,250.00 0.00 -0.00 0.00 0.00 O 
    USD.JPY 2007-12-07, 06:46:34 -2.50 50,000 111.5500 0.0000 -5,577,500.00 0.00 -0.00 0.00 0.00 O 
    USD.JPY 2007-12-07, 06:53:15 -2.50 -50,000 111.4950 0.0000 5,574,750.00 0.00 -0.00 0.00 0.00 O 
    USD.JPY 2007-12-07, 07:12:55 -2.50 -50,000 111.5600 0.0000 5,578,000.00 0.00 -0.00 0.00 0.00 O 
    USD.JPY 2007-12-07, 07:55:48 -2.50 50,000 111.5200 0.0000 -5,576,000.00 0.00 -0.00 0.00 0.00 O 
       Total ( USD.JPY )  0   1,500.00 0.00 0.00 0.00 0.00   
       Total ( JPY )     1,500.00 0.00 0.00 0.00 0.00   
       Total ( USD )     13.43 0.00 0.00 0.00 0.00 
    
    So the profit this day should have been $25.93 (net trades + commissions), but because of that translation line, the day was a loss of $34.99 (net trades + commissions + cash fx gain/loss).

    Any ideas?
     
  2. Surdo

    Surdo

    Cash FX Translation Gain/Loss has to be cost of carry, AKA interest paid/due on positions held overnight.

    Those are some pretty big numbers, I hope you saved enough to pay your Captal Gains!

    el surdo
     
  3. I think all interest/cost of carry is covered in their "Accrued Interest" line item. And these positions were only held for a few minutes.
     
  4. I'm now running into this same thing with my last month's statement. It is affecting my Options on Futures calculations. The net is the same, but the calculations are different. I don't trade currencies.

    If anyone knows more about this, or any IB rep here could shed some light on exactly what this "FX translation" is that would be great.
     
  5. Monteagle

    Monteagle

    Translational G/L should not affect you -- you can ignore the number. Any net effect of it will be included in your net on the trade -- it is not a separate gain or loss, in other words. As to why this is showing up on statements, I do not know. Pretend you don't see it!
     
  6. yep... cost to carry