forex |Form 8949 Capital Gain & Wash Sales calculator software

How to include forex trades in the Realized Gain/Loss Report


Q:I come from a country where forex is treated the same as stocks for realized gains purposes.

I have not been able to find a way to include forex trades in the Realized Gain/Loss Report.Is there any way to do it in TradeMax?

A:In TradeMax, Forex trade should be reported on Sect.1256 Report( Mark to Market as default)

You also can use blacklist function add the forex data to the realized gain/loss report.

  1. Click Options button, and select Black List tab,  the following dialog box is displayed:

In “filter” dropdown-list select the “Realized Gain/Loss report”,remove the “Forex”,””Forex Future”  from the blacklist

Click the “ok” button,

In general tab,click “clear report cache” button

Now you can check your Realized Gain/Loss Report.Forex data is included in the report

How to Calculating Forex Profit and Loss


Forex PIP & Gain/Loss Calculation

Understanding how to calculate FOREX pip value and profit/loss (Gain/loss) requires a basic knowledge of currency pairs and crosses.
Direct Rates: GBP/USD, EUR/USD, AUD/USD, NZD/USD
Indirect Rates: USD/JPY, USD/CHF, USD/CAD
Cross Rates: GBP/JPY, EUR/JPY, AUD/JPY, EUR/GBP, GBP/CHF
(Where the US Dollar is not involved)

Profit/Loss Calculation

DIRECT RATES

Currency pairs where the USD is the quote currency are referred to as direct rates. This holds true for such currencies as the EUR,GBP, NZD and the AUD.

Calculating direct Rate Pip Value
Pip stands for “price interest point” and refers to the second smallest incremental price move of a currency.

While pippets are the smallest, most calculations are done for pips.

Pip value for direct rates are calculated according to the following formula:
Formula: Pip = lot size x tick size
Example for 100,000 GBP/USD contract:
1 pip = 100,000 (lot size) x .0001 (tick size) = $10.00 USD

Calculating Direct Rate P/L (Profit/Loss)
Calculating P/L for direct rates is calculated as follows:
Formula: Selling price – Purchase price = P/L
Example for 200,000 GBP/USD contract initially bought at 1.7505 then closed at 1.7540:
1.75404 (selling price) – 1.75055 (purchase price) = 35.1 pip profit
To further convert the above P/L to USD, use the following calculation:
Formula: Pip profit (loss) x lot size x tick size = USD profit (loss)
35.1 (pip profit) x 200,000 (lot size) x .0001 (tick size) = USD $702 profit

INDIRECT RATES
Most currencies are traded indirectly against the U.S. Dollar (USD), and these pairs are referred to as indirect rates. An example is the USD/JPY (Japanese Yen). The USD is the “base currency,” the JPY is the “quote currency” and the rate quote is expressed as units per USD. An example of a indirect rate is as follows: USD/JPY trading at 100 means that 1 USD = 100 JPY.

Calculating Indirect Rate Pip Value
Pip value for indirect rates are calculated according to the following formula:
Formula: pip = lot size x tick size / current rate
Example for 100,000 USD/JPY contract currently trading at 100.254:
1 pip = 100,000 (lot size) x .01 (tick size) / 100.254 (current rate) = USD $9.97

Calculating Indirect Rate P/L (Profit/Loss)
Calculating P/L for indirect rates is calculated as follows:
Formula Selling price – Purchase price = P/L
Example for 100,000 USD/JPY contract initially bought at 100.254

then closed at 100.508:
100.508 (purchase price) – 100.254 (selling price) = 25.4 pip profit
To further convert the above P/L to USD, use the above “Calculating Indirect Rate Pip Value” as follows:
1 pip = 100,000 (lot size) x .01 (tick size) / 100.254 (current rate) = USD $9.97
Therefore: USD $9.97 (pip value) x 25.4 (pip gain) = USD $253.24

CROSS RATES

Currency pairs that do not involve the USD are referred to as cross rates. Even though the USD is not represented in the quote, the USD rate is usually used in the quote calculation. An example of a cross rate is the EUR/GBP. Again, the EUR is the base currency and the GBP is the quote currency.

Calculating Cross Rate Pip Value
Pip stands for “price interest point” and refers to the smallest incremental price move of a currency. Tick size is the smallest possible change in price. The base quote is the current base pair quote. Pip value for cross rates are calculated according to the following formula:
Formula Pip = lot size x tick size x base quote / current rate
Example for 100,000 EUR/GBP contract currently trading at .6750, and EUR/USD currently trading at 1.1840:
1 pip = 100,000 (lot size) x .0001 (tick size) x 1.1840 (EUR/USD base quote) / .6750 (current rate) = USD $17.54

Calculating Cross Rate P/L (Profit/Loss)
Calculating P/L for cross rates is calculated as follows:
Formula Selling price – Purchase price = P/L

Example for 100,000 EUR/GBP contract initially sold at .6760 then closed at .6750:
.6760 (selling price) – .6750 (purchase price) = 10 pip profit

To further convert the above P/L to USD, use the above “Calculating Cross Rate Pip Value” as follows:
1 pip = 100,000 (lot size) x .0001 (tick size) x 1.1840 (EUR/USD base quote) / .6750 (current rate) = USD $17.54
Therefore: USD $17.54 (pip value) x 10 (pip profit) = USD $170.54 profit

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Follow is TradeMax Sect.1256 report calculate Forex Gain & Loss

What’s New in TradeMax™ Ver 2010


Most of the new features in version 2010 relate to expanded corprate event module and option cost basis auto adjustment and Reporting capability, especially when it comes to tax reporting.  There currently is no other trader tax software that comes even close.

Feature: Benefit:
Intelligent Option Cost Basis Adjustment Auto- detecting Assigned, exercised and expired option, also defers cost to corresponding shares with its Option Adjustment function.
Comprehensive Corporate Events Module keep track of cost basis adjustments due to corporate actions like splits, spin-offs, and mergers. By using this feature, investors can view all of their transactions that have occurred in this particular symbol such as Return of capital, Reinvested Income and Dividend paid on Short Sales which provide you with the facility to conduct transactions more accurately and adjust your trade for tax purpose by maintaining the trade history.
Powerful Forex Rates Wizard Auto-convert the transactions under Non-USD currency into USD figures using downloaded Forex Rates
Price History Module tracking the price history of the security you downloaded and generate unrealized gain/loss report
support online borker Download data from broker server with one click

Free Registration Code of TradeMax 2010 Basic


Neutral Trend Inc. is pleased to announce that they will offer a free registration code of TradeMax® 2010 Basic edition to the fans of their twitter and Facebook to commemorate their 3rd anniversary of TradeMax brand launching.

“This will be the first free Wash Sale software which generates Schedule D form in the market.” Neutral Trend said. “We noticed when the tax season is coming, many users consume tremendous time to prepare Schedule D form, especially there are Wash Sale trades involved. We are trying to help.”

TradeMax®, a brand launched 2 years ago, is a full featured tax software specially designed for active traders to manage their portfolios who have single or multiple accounts. It also provides normal traders with features to auto-generate a Schedule D or Mark to Market Form 4797 within seconds. With TradeMax®, users can easily track portfolio performance and adjust cost for stock positions with CALL/ PUT options (including the new 21-character OIS symbol) assigned or exercised. TradeMax® can also handles corporate events to calculate cost basis compliant with Wash Sale rules.

“Wash Sale Software normally costs from $50 to $200, we will give out TradeMax 2010 Basic edition registration code, a $69 value, free for a limited time. This offer will expire on September 12th , while supplies last.” Neutral Trend said. “A little effort needed to get our free registration code. The registration code will be announced using Twitter under user ID “itrademax”, and on Facebook using ID “trademax” Neutral Trend iTrademax”. For those don’t have Twitter or Facebook access, we will soon release a Youtube clip with a registration code embedded.” Youtube clip can be searched using keyword “TradeMax”.
——-This offer will expire on September 12th 2010 ———————
regname:trademax201006b
regcode:000015-U59V4Z-62UY2T-JEQAA5-54MRZZ-GXPHU5-2F310D-HV4VUK-2GJ81C-02DG3B
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“TradeMax® is a feature-rich software and it is very easy to use. We encourage user to review our flash demo at http://www.itrademax.com/demostration/key-features.htm, User can access our online tutorial section at http://www.itrademax.com/ipress/quick-start/online-tutorial.htm. Registered user also receives unlimited time technical support, our team can be contacted to guide user through learning curve.” Neutral Trend emphasized. “Our developing team is working on adding a Option Analysis module, a function might costs a few thousands if buying other software. This feature is scheduled to be released in later this year.”

Neutral Trend Inc devotes to tailor TradeMax to better cater for the needs of active traders, any feedbacks are appreciated!

The key features of TradeMax® 2010 Basic edtion include the following:

  • Track your trade
  • Record various corporate events such as stock split, merge, spinoff, reinvested capital
  • Auto-detect assigned, exercised and expired option, defer cost to corresponding shares
  • Auto-identify 21-character new OIS option symbol
  • Auto-convert the foreign transaction (Non-USD) into USD figures
  • Download price history of securities for your comparing.
  • Monitor your capital gain easily
  • Setup and Combine different accounts to monitor your capital gains
  • Filter items you don’t want in Black list
  • Run various reports (Up to 13) to monitor your capital gains and losses.
  • Calculate various complicated Wash Sale scenarios accurately.
  • Prepare schedule D
  • Support importing trade data from most common-used brokers directly or the downloaded data in various formats.
  • Use strict FIFO trade matching as a default method
  • Force-Match specific trade transactions
  • Assign short trade, convert short / long position
  • Basic Edition Support 200 transaction records per year.

All TradeMax® 2010 products are available today

Company web-site: http://www.itrademax.com

Direct download link: http://www.itrademax.com/download.htm

E-mail: support@itrademax.com

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