I’ve got a question which keeps popping into my head.
Margin Trading and all its component parts is a difficult complex concept to get your head round at the first time of reading and studying. But I’m getting there slowly.
As I’m based in the UK and love my ££ pounds would it be easier to denominate my account in dollars? As dollars is the biggest currency in Forex. Or should I just denominate my account with pounds?? I’m confused as to which is the best way to go? Obviously I just want the easiest and most practical way of running an account.
@Lang15
I would just keep in the local currency ie GBP
Your account currency does not affect or limit what instruments you can trade. If the profit/loss from a trade is in a currency other than your account currency then your broker will convert the sum to your account currency at the prevailing rate.
It is also worth remembering that if your account currency is different to your local currency then the value of your account balance in local terms will also vary according to fluctuations in the exchange rate between the account currency and your own local currency - in your case GBPUSD.
This effect may be minimal on a small account but can become noticeable on a larger account and over a prolonged period of time.
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