Hello,
I hope this is the right category. Basically a cross currency conversion.
so you buy $100 eur/usd at .7500 they move to .6800 how many aussie dollars do you you have if aussie dollars are trading at 1.3000 Thank you.
There is no conversion necessary. If you have an account in AUD, this is never converted in order to open a position for you in EUR/USD or any other forex pair.
[Babypips - This is a nonsense question that keeps coming up on the forum. New traders are confused. Is there something wrong with the information given in the BP education section?]
The account is in usd. so just to clarify and you buy euros traing at .75 the euros are trading at .68. with aud trading at 1.30 how many aud is it worth. The account denominated in usd.
There is no conversion necessary, you are not buying or selling currency.
You are actually placing a bet with your broker that the exchange rate between two currencies will rise. If the exchange rate rises, you have won your bet and the broker must pay you money in your account currency - the more the exchange rate rises, the more he must pay you when you close the position. If the exchange rate falls, you will have to pay him money from your account in that currency when you close the position. Your trade is a bet with your broker, neither of you is buying or selling any currency here.