The profit or loss incurred by trading is calculated in the quoted currency.

Currency pairs consist of two currencies. The first is called the base currency and the second is called the quote currency.

In EURUSD, for example, the euro is the base currency and the dollar is the quote currency.

There may be several cases where the quote currency is trading a currency pair other than the account currency.

1. The account currency and the base currency match.

In this case, use the price at liquidation to calculate the profit/loss to convert to the account currency.

Therefore, in the case of a buy order, the bid price is used, and in the case of a sell order, the ask price is used.

Let’s say you traded USDEUR and your account currency is USD. Profit/loss calculated in EUR must be converted to USD using the bid/ask price at liquidation. Choose a price based on your order type.

When trading indices and stocks on MT4, convert using the current bid price.

For MT5, it depends on whether the trading result is a profit or loss. In case of profit from trading, the bid price is used, and in case of loss, the ask price is used.

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2. The account currency does not match the base or quote currency.

In this case, the system converts using the price of the currency pair that includes the trading’s quote currency and account currency.

In the case of a buy order, the bid price is used, and in the case of a sell order, the ask price is used.

Let’s say you traded EURUSD and your account currency is CAD. Profit/loss calculated in USD should be converted to CAD using the bid/ask price at the time of liquidation of USDCAD. Choose a price based on your order type.

When trading indices and formulas on MT5, you choose different prices depending on whether the trading result is a profit or loss.

In case of profit from trading, the bid price is used, and in case of loss, the ask price is used.

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