Saxo Bank uses two different calculation methods: valuation at market prices (Mark-to-Market) and valuation based on closed positions.
Valuation at market prices
The Mark-to-Market calculation method is based on the principle of valuing positions at their current market value.
You can find the result via Portfolio > Performance
Valuation based on closed positions
The realised results are only measured once the positions are closed. The profit or loss of the closed position is the difference between the buying and selling price of securities (which already includes transaction costs). The gain or loss from the closed position does not include any dividends and coupon payments or ongoing charges received during the period the position was open.
You can also look up this data in SaxoPartnerConnect via Historical reports > Closed Position report. This overview is not available to your end customers via SaxoPortfolio.
At Saxo Bank, historical profit reflects income for a specific period, meaning it only includes profits/losses made in that specific period (e.g. year to date) and not results made before or after the period . This also means that a stock with a large positive gain in the previous year may still have negative gains in the current year.
The way returns are calculated at Saxo means it is possible to assess how your clients’ investments have performed at the instrument level over a period of time.
In 2020, 100 units of a certain stock are bought at a price of 100.
At the end of 2020, the stock price has risen to 120, which means that the profit for 2020 in that particular stock will be 2000 (100 * (120-100)).
By mid-2021 the stock price has fallen to 110. This will lead to the profit for 2021 in the stock being -1000 (100 * (110-120)).
If these positions are sold for 110, Saxo will show a 2020 total return of +2000 and a 2021 total return of -1000, which will be +1000 in total.
Saxo will also present realised results (P/L) for the instrument once the position is closed and this profit/loss will correspond to the full lifetime result of the position which is +1000.