gnucash/Docs/xacc-currency.html
Linas Vepstas 4f1f243568 add note on currency trading
git-svn-id: svn+ssh://svn.gnucash.org/repo/gnucash/trunk@1567 57a11ea4-9604-0410-9ed3-97b8803252fd
1999-01-05 17:44:43 +00:00

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<pre>
A double entry system stores both values (and makes teh transaciton balance):
double entry states that value1+value2+value3+ ... = 0
where each value is recorded in a different account.
A value is value=exch-rate*amount (for currency accounts)
value=price*num-shares (for stocks/mutual-funds)
Thus, buying a widget in japan and using dollars to pay for it would appears
like so:
SpendAcct: (an oridnary bank/cash acct valued in USD)
----------
Date xfer from memo cost
1/5/99 [YenAcct] Buy widget $1.00
YenAcct: (a currency trading account valued in yen)
--------
Date xfer from memo purchase rate
1/5/99 [SpendAcct] Buy widget Y150 0.00667
The engine links together all three of these values (1.0, 150, 0.00667)
permanently and makes it imposssible to change one without changing another,
so that the grand total is always zero.
</pre>