Practical Q on Forex trading

Beginner Questions
1

Hi guys, I’d love to hear your feedback on a couple of my practical questions, I will send you some very good karma in return! :wink:

  • Can you trade AUD/CAD when you only have EUR cash in portfolio?
  • If you trade all types of different currency pairs (USD/JPY, EUR/GBP…), how do you manage to get all your profits in the same currency at the end of the day, or do you start an account with some of the major currencies in cash (eg EUR, GBP, USD) and keep it that way?
  • If you buy EUR/USD, do you gain interests for the EUR you bought and pay for the USD you sold (when in debt)?
  • When trading with leverage, if you have 10k EUR, do some brokers allow you to use 5k EUR to buy 20k USD and the other 5k EUR to buy 20k GBP in parallel?

Many thanks!

Matthias.

2

you’re not actually converting your euros or whatever currency you have. You’re just betting, so if you believe the EUR is stronger than the dollar at the time, then you would just place a BUY, vice versa. The BabyPips school explains all of this in detail

1 Like
3

Hi Justshell,

Thanks for your response!

Of course, this makes all the difference…
Could it be that this is something broker-dependent? Because in my current broker, if I buy EURUSD, then effectively my USD are being converted to EUR. I don’t think they enable me to bet on EURUSD without the actual currency being converted.

Many thanks.

4

who’s your broker? And nothing is being converted into anything at all.

5

Hi Justshell,

Apparently it is possible while it seemed not to be, must have been my misunderstanding.
Many thanks for shining that light on me, that quite shook up my world, wow. :slight_smile:

Have a great day.

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6

No it’s fine lol A lot of people think that they’re actually converting their currency. I thought the same when I first started studying forex

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7

Hi Justshell,

Can I ask you which broker you use?
I am using Interactive Brokers, and they don’t pay you the swap, only charge you for the lended currency.
I.e. if I’m long on 25k EURUSD and lend 25k USD, I will pay about 4% monthly on the 25k USD as long as my position is open.

Many thanks.

8

i use oanda, check them out!I haven’t had any issues with them so far.

1 Like
9

If you want to converting your EUR in cash you should go to a money changer…