What about when ur trading eur denominated pairs? Is it better to have opened a Eur account?
exactly ā¦ and doesnāt want to listen ā¦ i regretted having replied, above, in the first pace
This is my understanding, anyone please correct me if iām wrong.
EUR/USD
EUR is base currency (a.k.a. numerator IMO)
USD is quote currency (a.k.a. denominator IMO)
So EUR currency can be denominated with all other currency. By convention, i donāt think there is any currency with EUR as the denominator from any spot forex broker.
Reason probably due to the larger exchange rate value of the EUR against other currency.
Imagine jpy
the exchange rate index would be
say the EURJPY is currently 156.390
then JPYEUR index becomes
1/156.390
=0.00639
If their convention is 5 decimal places, the pip value is too small to be useful, and the broker may have to include more decimal places and come up with a 7-decimal-place system or a new industry benchmark method, such as a recognizable JPYEUR index. Thus, I think it is an industry benchmark convention to trade spot forex indices close to 1.00000 with 5 decimal places or 100.000 with 3 decimal places.
So, regarding your question, I assume that your use of the word ādenominatedā has a different meaning than how I understand it. It seems that the word ādenominatedā has different meanings in two different contexts.
Anyway, it doesnāt matter which currency you use to open your account with your broker. The real-time balance is automatically adjusted regardless of the currency, so it doesnāt mean that if you trade EUR pairs, you have to open your account ādenominatedā in EUR. It doesnāt matter at all.
Now, iām wondering why i attempt to answer your question when it doesnāt matter at all.
Its junk compared to ctrader imo
I guess I am the one that used the word denominator wrong.
I was basically asking you, why exactly do you recommend always opening a trading account with the USD currency. I really trade all types of pairs, most of them dont involve UDD at all. So I am guessing there would be no benefit for meā¦?
It is simply a personal preference to open an account denominated in USD. In practical terms, it doesnāt really matter at all.
Furthermore, if you are living in a country that adopts the euro as its common currency, then it actually makes sense for you to open an account in euros instead of USD.
It was made 20 years ago and looks like itās even older. Ctrader is better on almost every level.
Mt4 is cheaper for brokers so they all push it as being the most popular knowing that newbies donāt know better and most people donāt like change
may i also add something to Johnās answer just above?
people thinking of using MT4 might care to read all of the post linked to just below ( one of the most important, most relevant and potentially most helpful posts in the entire forum), take it seriously, follow the video link in it and the link at the end and take them seriously, too!!
Do you have an opinion on blueberry markets?