The use of FIFO (First In, First Out) accounting and managing multiple long and short positions can lead to discrepancies that need to be reconciled in your account.
The LMAX Global account valuation utilises the FIFO (First In, First Out) accounting principle, while CYBMIND employs a valuation method that treats positions independently.
Under the FIFO approach, if you hold a long position and subsequently open a short position on the same instrument, the selling trade of the new short position is considered to close the long position first. As a result, only one position per instrument is displayed.
In contrast, CYBMIND manages each long and short position on the same symbol independently, allowing for a distinct calculation of realised profit and loss. Therefore, if you open a long position followed by a short position on the same symbol, both positions remain open in CYBMIND. The execution of the short position does not count as an exit from the long position, meaning it does not generate a realised profit or loss.
This fundamental difference leads to variations in cash balances and open profit and loss figures between LMAX Global and CYBMIND. While the total balance should ultimately match, the realised and unrealised profit and loss figures do not align.
Another factor contributing to the balance discrepancy between CYBMIND and LMAX Global is the currency conversion process.
LMAX Global conducts a single currency conversion at the end of each trading day. During the day, all realised profit and loss, commissions, financing, and other metrics are tracked in their respective quote currencies. At the end of the trading day, a sweep conversion is performed to convert the total into the account currency. The cross rates used for these conversions are not accessible via the Rest API and are based on the market mid-price plus a spread.
Conversely, CYBMIND converts all realised profit and loss, as well as commissions and financing costs, at the market top of the book rate at the time of execution. The timestamp for transactions in CYBMIND reflects the moment they occur within the CYBMIND platform, rather than the time recorded by the broker.
These differences can lead to discrepancies in total balances between LMAX Global and the CYBMIND platform. To reconcile these differences, users can apply an adjustment command, as detailed in the Manage Account Form.