Trading using fiat or crypto-fiat currency
If you trade with a fiat or equivalent currency then the process for calculating realisations is made easier. We don't have to take the first step of converting every realisation or fee to a fiat currency. If you nominate a local fiat currency on your trading account then we convert all realisations to that currency. Both values will be shown you your activity statement.

CHAINOMETRY stores daily exchange rates of all major currencies. When we convert the exchange's fiat currency (or equivalent) to your local nominated currency we do so by converting the buy price and sell price of the asset to your local fiat currency at the time of purchase and at the time of sale. This way we can get the most accurate realisation. Here's an example (all rates and prices are fictional):

This is a short-cut and doesn't reflect an accurate picture of what happened. CHAINOMETRY uses the following method to work out the realisation in your local currency:

1. Convert the purchase unit price to the local currency at the date of purchase. The exchange rate on the 1st April was 1 USD = $0.70 AUD

   1st April 2018: Unit price = $5,300 USD * (1 / 0.70)
1st April 2018: Unit price = $7,571 AUD
2. Convert the sell unit price to the local currency at the date of sale. The exchange rate on the 1st June was 1 USD = $0.75 AUD

   1st June 2018: Unit price = $6,300 USD * (1 / 0.75)
1st June 2018: Unit price = $8,400 AUD
3. Calculate the realisation

   1st April 2018: Total Cost ($7,571 * 0.5) $3,785 AUD
1st June 2018: Total Received = ($8,400 * 0.5) $4,200 AUD

Actual Realisation = $415 AUD

There's a significant difference between the two methods of calculation; in the above example, a difference of $251 AUD of extra income you would declare that you didn't actually receive.