Mark to market
Trading profit and loss is realised on your account balance on a daily basis. We will mark your position to the RBS Spread Trading price at the end of each day and calculate the profit and loss for each of the positions you hold. This process is known as 'mark-to-market'.
We will then re-open your position the following day at the previous day's close price.
In the example below, the Market in VOD closed the previous day at 146.50 and a position of 10,000 long has been brought into the day. The close price of VOD was 146.75.
In this case the profit/loss is: The P/L on the day for VOD is the difference between the total contract value brought forward and the total contract value after Mark To Market.
In this case the profit/loss is:
(10,000 x 146.75) - (10,000 x 146.50) = 14,675.00 - 14,650.00 = 25.00
In the next example, there was no position brought forward, but there have been four PRU trades in the day. Buy 2,000 @ 505.30, Sell 1000 @ 505.75, Sell 500 @ 507.5, Sell 500 @ 507.5. Like the example above, the total value of these trades is what is marked to the market value to determine P/L.
The Ledger Activity section of the statement shows the total mark to market for each currency. The examples above show Mark To Market profits of 26.50 and 25.00, meaning a Total Mark To Market entry in the british pound ledger activity of 51.50 as shown below.
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