Calculating Unrealized Gain
This lesson will show you how to calculate the unrealized gain in CurrencyXchanger.
Note, every time you do a transaction you usually buy the currency rate at a cheaper rate than the market rate.
The Unrealized Gain is the Dealing Rate minus the Market Rate multiplied by the volume in which you've bought and you've sold. This lesson will show you how to calculate this difference. Unrealized Gain = (Dealing Rate - Market Rate) * Amount
Open a New Invoice
- Click on the 'Invoice' module from the tool bar then click 'New'.
- Scroll to the bottom right within the invoice and you will see the 'Unrealized Gain' column.
Enter your transaction
- Begin with a transaction and enter the amount and currency you wish to buy in 'Amount'.
- To the right of the invoice, you can see your currency dealing rate (ie 1.92183) under 'We Buy', the market rate (ie 2.02298) under 'Spot' and the sell rate under 'We Sell'.
- The dealing rate is cheaper than the market rate as it should be in most cases.
- Click 'Add Row' and you'll notice the 'Unrealized Gain' is calculated.
- Here we have $50.57 in our home currency as unrealized gain.
- This is not real profit, it is just showing you unrealized gain you have generated from the difference between the market rate and your rate times the volume which in this example was 500.
Try another transaction
- This time try entering the amount and currency you wish to sell in 'Amount'.
- To the right of the invoice, you can see your the market rate (ie 1.40904) under 'Spot' and the sell rate under 'We Sell' (ie 1.47949).
- So you sell for more, again with the potential to make more.