What happens when.....?

[sunyata]

With Shadow's encouragement I'm now posting my second dumb question:
If I want to trade, say, EUR/USD and I pay my account in £'s ( GPB ), how does this work? Is is exchanged again from Euro to Pound?

[toptick07]

If I understand your question correctly, you fund your account with GBP and you wish to trade EUR/USD. You should have an GBP denominated account. That is, your accounting should be done in GBP regardless of what pairs or crosses you trade. The operational staff of your dealer will have a definitive answer for you.

[shadow]

Ya, topstick's right, once you start demo trading, you'll understand. When you make pips in trading, no matter what pair you trade, each pip you make or lose is in whatever currency your account is in.

[rhodytrader]

Originally Posted by sunyata

With Shadow's encouragement I'm now posting my second dumb question:
If I want to trade, say, EUR/USD and I pay my account in £'s ( GPB ), how does this work? Is is exchanged again from Euro to Pound?

The answer is yes. EUR/USD and the other non-GBP pairs are for you like EUR/GBP and the other crosses would be for someone with a USD account. There is a profit/loss from the position, which then gets translated in to your account currency at the prevailing rate against the EUR.