How to Reconcile Molecule with your FCM Statements
Most people using Molecule focus on Mark-to-Market, which is not quite what you see on your bank statements every day. This article helps you decipher your bank statement (assuming your bank uses GMI or something similar), and compare it to Molecule's numbers.
The numbers you're looking for on your FCM statement (usually at the end of the first section, in a summary table):
- Market Variance
- Today's Commissions & Fees
- Option Premiums (for trades that are still alive)
The numbers you're looking for in Molecule (available on position screens, PNL extract, and many custom reports):
- MTM Change
- PNL Change
These numbers, calculated by Molecule, are denoted by asterisks in the below comparisons.
Validating MTM Change
Comparing Molecule's calculation for MTM Change with the FCM is straightforward.
*MTM Change* ≈ Market Variance - (Sum of Today's Commissions & Fees)
Validating PNL Change
PNL Change is essentially MTM Change, with the addition of fees. If Molecule is not generating/storing fees for you, here's the comparison:
*PNL Change* ≈ Market Variance - [Commissions/Fees] - [Option Premiums Paid for Living Trades]
Many users have fees automatically applied to their trades in Molecule, in which case the comparison will be slightly different:
*PNL Change* ≈ Market Variance - [Option Premiums Paid for Living Trades]
Getting to Cash
Once you've validated that MTM Change and Market Variance get along, you can go back into net liquidating value. Roughly,
Prior Net Liquidating Value + Market Variance ≈ Current Net Liquidating Value