Latest update date: Feb 10th , 2021
Calculating profit and loss for cryptocurrency margin, FX, and derivatives trading
We have added the ability to utilize exchange-calculated profit and loss for derivative calculations, in addition to our existing FIFO/LIFO treatment based on your user settings.
In coordination with our tax counsel, we have confirmed that both approaches are acceptable for the calculations of profit and loss.
CHOOSING YOUR PREFERRED METHOD
When you upload the transaction history of each exchange, select your desired "Derivative/FX treatment" and upload.
"Exchange-calculated" will be selected as default. If your preference is to continue using our FIFO/LIFO based cost basis method, please select the second option.
*Release dates of updated logic for affected exchanges
Feb 10th, 2021: TAOTAO, GMO
Feb 16th, 2021: DMM, Liquid, Zaif
■If you wish to alter your preferred method
If you have been using FIFO thus far and wish to switch to exchange-calculated profit and loss you need to reset and re-upload your past transaction history for the relevant exchange. Please follow the steps below.
①Click the trash can icon on the left side of "Add Transactions".
②Select the exchange you want to change from the source and click "Delete Selected".
※Note; deleted data cannot be recovered.
③Go back to the upload screen for the relevant exchange and select "Exchange-calculated" for your derivative treatment and re-upload your file. If you have multiple files, please upload them in "Append" mode, starting with the oldest one.
・If you use "Exchange-calculated", your position balance will not be displayed, only your profit and loss will be shown as calculated by the exchange. We do not verify or alter exchange-calculated profit and loss. If you choose to use FIFO, position management will also be available.
・We recognize that a corporation needs to revalue its book value at the end of the fiscal year, so you need to choose FIFO and calculate taxable income by assessing the market value against the balance at the end of the fiscal year. Please consult your tax accountant for your final decision.
・Some exchanges do not have enough information in their trading history files to manage positions. In such cases, we will continue to calculate the profit and loss based on the increase or decrease of margin positions.