Cash-based calculation method

What is the cash-based calculation method used in my Invest.MT5 account? 
 

The cash-based calculation method is an approach that focuses on actual cash flows in and out of your account. When you purchase securities, the cash value of the purchased product is deducted directly from your available account balance. This provides a more accurate representation of investment-related transactions. 
 

Example: If you have 10,000 EUR in your account and successfully purchase stocks worth 3,000 EUR, the initial order value will be deducted, and your available balance on the MetaTrader 5 platform will reflect 7,000 EUR (excluding execution or other costs). 

Are my funds and assets secure with this calculation method? 
 

Yes, your funds and assets are completely safe and secure. The calculation method only affects how your account values are displayed in the MetaTrader 5 platform. You fully own all your assets (fully-paid securities). 

How is Floating P/L (Profit/Loss) calculated in the Invest.MT5? 
 

Floating P/L (Profit/Loss) is calculated using a formula that takes into account both the current market conditions and the conditions at the time the position was opened. This provides a comprehensive view of your investment performance, including the impact of currency fluctuations. 
 

Here's how it's calculated: Floating P/L = (position size * current market price * current exchange rate) - (position size * open price * open exchange rate) 

How are my Balance, Equity, and Free Margin calculated in MetaTrader 5 platform? 
 

Under this approach, Balance or Equity represents the available cash balance to open new positions if there are no limit orders and/or national taxes/or levies reserved. The values will be equal to Free Margin in this case. 
 

No limit pending order: 

· Balance = Equity = Free Margin = Available Cash 
 

With limit pending order: 

· Balance = Equity = Available Cash – Initial Value of limit order 

· Free Margin = Available Cash 
 

Example: 

If you begin with a 10,000 EUR balance and place a 2,000 EUR pending limit order: 

- Margin: 2,000 EUR (initial value of the pending limit order) 

- Balance (as Equity): 10,000 EUR 

- Free Margin: 8,000 EUR (available funds or available cash) 

Please note that execution fees and/or other costs are not included in this example. Sufficient funds must be available in your account to cover the position value, as well as applicable commissions and/or other fees; otherwise, the orders will not be executed. 

Across other platforms such as the Admirals Mobile app (iOS and Android) and Admirals Platform (Dashboard), Balance and Equity would not be visible as separate fields. Instead, you'll see other metrics which provide clear information about your investments.   

Where can I find my current "Account Value" in my Invest.MT5 account? 
 

You can monitor your current Account Value or market value of each asset through several methods: 
 

MetaTrader 5 desktop platform: 

- Trade tab: The 'Value' column represents the current 'Value' of each position in instrument currency. (You can select this column by right-clicking and choosing Columns > Market Value) 

- Exposure tab: This displays the current 'Value' of each open position in account currency (including uninvested cash).  

 
Liquidation value here refers to the display of the current total account value in the account's currency. 

Mobile app: Check the Wealth screen for the ‘Total Account Value’.  

Admirals Platform (Dashboard): View the 'Account Value’ under the Wealth Bar. 

How can I check my total account value, invested amount, and other metrics? 
 

You can find this information directly under Wealth Bar in the Admirals Platform (Dashboard) and/or under the Wealth screen in the Admirals Mobile app (iOS and Android).  

Each value is explained with tooltips. 

How does this method handle currency risk? 
 

The cash-based method takes into account the exchange rate at the time of opening a position, providing a comprehensive view of currency impacts on your investments. This gives an accurate representation of true returns, including currency fluctuations. 

Can I still track my investment performance effectively with this method? 
 

Yes, this method allows you to track your investment performance effectively. It provides a clear understanding of how your investments are performing by accounting for your specific cash flows and currency impacts.