What is the difference between Capital Gains and Trader Profit/Loss?

In the application you are given two figures for each Financial Year: Capital Gain/Loss and Trader P/L. It is worth remembering that a financial year starts on July 1 and ends on the following June 30.

How we calculate Capital Gains

Capital gains for a financial year is estimated through taking all trades where cryptocurrency was disposed of (I.E. Sold). For each trade, the application will find a trade where that cryptocurrency was bought before the sell date and connect it to the sell trade. The app then runs the following equation on each sell trade between 1 July and 30 June:

 

(AUD Sell value) – (AUD Buy value) – (AUD Fee for Sell Trade) – (AUD Fee for Buy Trade) = Raw Capital Gain/Loss

Example:

Bought 1 Bitcoin for AUD $600 + $6 fee on 2016-01-01 00:00:00

Sold 1 Bitcoin for AUD $20,000 + $200 fee on 2018-01-01 00:00:00

$20,000 – $600 – $6 – $200 = $19,194 Capital Gain

You can download the above example data here and import it using our Bulk Upload function to see for yourself.

Note: This does mean that (if you have any) buy trades can be before the start of the financial year. It also means any cryptocurrency you held at end of financial year has no effect on the figures in our app because it has not been sold/disposed of yet. 

How we calculate Trader Profit/Loss

The Trader P/L calculations factor in every trade that occurred in the financial year. For each asset it runs the following equations for trades between 1 July and 30 June:

(Sum of Sells valued in AUD) – (Sum of Buys valued in AUD) = Asset Profit/Loss excluding Fees

(Sum of All Assets P/L) – (Total Fees in AUD) = Trader P/L

What is not factored into the dashboard figure:

  • Opening Stock
  • Closing Stock