Fx Trading

[alciati]

HI Marc
i Have one portfolio multicurrency with cash and stocks in different currencies. In properties I have not selected any Default Cash Account as the flow from/to cash depend on the currency.
I have no problem in updating cash in/out manually when I buy.sell security, but I have issues in how to input a quick FX trade (example EUR/USD)

ex sell 10,000 Eur on 7 Sept @ 1.1990---> buy 11,990 usd
buy 10,000 EUR on 12 Sept @ 1.1950 --> sell 11,950 usd

I normally tick " Specify Exchange Rate to Default" with the spot price I traded.

IS this the right way? I often get wrong balances vs my cash statement from the bank.
Does the system then record the P&L profit in this way?

Thanks

Andrea

[Mark]

Hi Andrea,

You would record the buys/sells in the appropriate cash. For example on your Sep 7 trade, sell 10000 shares of EUR cash and buy 11990 shares of USD cash. You can record the exchange rate in the non-default currency cash. Since you're not using a default cash account, you have to record both sides of this transaction, just like you would any other.