IB TWS "Virtual FX Position" problem

T

travis

I've called IB before on this but was never able to figure it out. How on earth do you fix all the forex problems? If you trade the GBL (EUREX) and then try to convert everything in dollars, in the FX Portfolio section of the "Account" tab, it opens a "Virtual FX Position" (see attachment), which as far as I know can make you lose a lot of money - it's like a regular forex trade, as powerful as a future or even more (depending on the amount obviously).

However, if you go to the Portfolio tab and close that "Virtual FX Position", it works and closes it. Now, once again, you have a problem with that other menu, called "Market Value - Real FX Balance". Instead of having all dollars, now you have euros as well.

If you convert the euros, to have all dollars, once again you are opening a "Virtual FX Position".

If you close that position, you have euros again in "Market Value - Real FX Balance". On and on... it seems that once you make the mistake of trading a product in euros, you can never have a zero balance in euros and a closed "Virtual FX Position".

Anyone knows how to solve this problem?

My dream all these years has been to have a "real fx balance" with just dollars, and no open "virtural fx positions".
 

Attachments

what i saw on last release of TWS, this long trime problem should be resolved. but i didnt test it....

TWS 910:

"FXCONV Destination for Currency Conversions

Previously, any FX transaction, whether it was a deliberate pair trade or a conversion to convert a non-base currency balance back to your base currency, affected both the Market Value section for both currency balances, and the FX Portfolio section. The addition of the FXCONV destination allows you to identify a transaction as a currency conversion which will no longer affect the FX Portfolio section. In addition, TWS will attempt to determine whether or not an FX trade is intended as a conversion, and can automatically include FXCONV as the destination at your discretion. You can manually change this selection in the order line before you transmit the order. "
 
Hello moarla, thanks for participating.

Since you're the expert at this, can you please tell me what the attached picture looks like? My friend says everything is right, because "Market Value - Real FX Balance" says he has 5000 GBP. I say that he should worry instead because, by the FX Portfolio, it looks like he's short (or long) 48000 GBP and he has an ongoing loss of 3000 GBP from that position.

He considers it something like a mirage or an optical illusion (or a "bug"). I think he has a big forex position open and he's lucky it didn't cause him more damage.

What is your opinion? Real problem or optical illusion? And if we do your trick what could be the consequences? And how do we know that it worked? Thanks.
 

Attachments

travis - what version of TWS is that from? is your base currency USD or GBP? I would be somewhat concerned with that if your base is in USD because that FX position is almost 3x more than your total cash in USD.
 
Quote from travis:

Hello moarla, thanks for participating.

Since you're the expert at this, can you please tell me what the attached picture looks like? My friend says everything is right, because "Market Value - Real FX Balance" says he has 5000 GBP. I say that he should worry instead because, by the FX Portfolio, it looks like he's short (or long) 48000 GBP and he has an ongoing loss of 3000 GBP from that position.

He considers it something like a mirage or an optical illusion (or a "bug"). I think he has a big forex position open and he's lucky it didn't cause him more damage.

What is your opinion? Real problem or optical illusion? And if we do your trick what could be the consequences? And how do we know that it worked? Thanks.
More...

what is the base currency of the account? USD ? GBP?
 
i just saw it, its USD.

well n ot shure what that position is , but since its a "virtual FX position" change the position value to 0.

this must come from an operation in GBP made bevore...
 
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