No. Your USD never gets converted. The EUR (base currency) is converted into USD (your account currency) to determine the size of the trade to calculate your margin requirement.
Originally Posted by melidere
This is correct, though a slight correction is required. The conversion from JPY to USD is happening continuously as exchange rates move. This is the mark-to-market process. It doesn't just happen when you close the trade. Your account value is constantly changing in real time.
And when I close the trade the JPY is converted back to USD?
No. The USD/JPY rate does not change whether you win or lose. It only changes the magnitude. If you have a 100 JPY profit you have a 100 JPY profit. The difference is that at USD/JPY = 100 that's a $1 profit, while at USD/JPY = 200, that's a $0.50 profit.
If so, then isn't it possible to have a net loss if USD/JPY pair dropped significantly while your trade was open?
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