IB's "Cash FX Translation Gain/Loss"

D

datamerc

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?
 
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
 
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.
 
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.
 
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!
 
lightfootg said:
yep... cost to carry
More...
this is now almost a decade later, but l have a similar question, l hold 2 currencies in my account, both are in credit, so why should there be a cost to carry? my 'Cash FX Translation Gain/Loss' was over 10 in last daily statement. please explain why and what it means?
 
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