Exchange rate from account USD to base currency?

Created at 27 Feb 2022, 15:00
Subscribe
How’s your experience with the cTrader Platform?
Your feedback is crucial to cTrader's development. Please take a few seconds to share your opinion and help us improve your trading experience. Thanks!
RE

RedSeaBro

Follow

Joined 10.04.2021

Exchange rate from account USD to base currency?
27 Feb 2022, 15:00

Hi:

Say I have a account in USD and I am trading GBPAUD. What is the detailed currency exchange procedure?

I assume it is USD -> GBP ->AUD -> GBP -> USD.  If so, what is the exchange rate for USD -> GBP and GBP -> USD?

I know it is a basic and probably naive question to ask. But it is really important for me. If I earned some money from GBPAUD currency pair but USD suddenly increase with respect to GBP, so I might end up losing money?

Really appreciate detailed answers. Thanks in advance.

 

 

@RedSeaBro
Replies

PanagiotisCharalampous
28 Feb 2022, 08:12

Hi RedSeaBro,

Your assumption is correct. There is a conversion chain for each currency pair that allows cTrader to convert from one trade to another.

If I earned some money from GBPAUD currency pair but USD suddenly increase with respect to GBP, so I might end up losing money?

You won't lose money but the exchange rate will affect your profitability.

Best Regards,

Panagiotis 

Join us on Telegram and Facebook

@PanagiotisCharalampous

RedSeaBro
28 Feb 2022, 15:04

RE:

PanagiotisCharalampous said:

Hi RedSeaBro,

Your assumption is correct. There is a conversion chain for each currency pair that allows cTrader to convert from one trade to another.

If I earned some money from GBPAUD currency pair but USD suddenly increase with respect to GBP, so I might end up losing money?

You won't lose money but the exchange rate will affect your profitability.

Best Regards,

Panagiotis 

Join us on Telegram and Facebook

Thanks a lot Panaiotis for your timely reply. A follow question is why I will not lose money? For example, if I make 1 GBP profit with 10000 GBP. But the USD to GBP suddenly rises a lot, I probably will have less money because the 10001 GBP will be converted back to USD?

 

Regards

Bowen

@RedSeaBro

PanagiotisCharalampous
01 Mar 2022, 08:37

Hi RedSeaBro,

Yes you will have less or more money because of the exchange rate. But positive will not become negative. It's like conducting business in a foreign currency but then you need to convert it to you local one. Your profitability will always be affected by the exchange rate but if you are profitable, you will remain profitable. Exchange rate cannot convert profits to losses. 

Best Regards,

Panagiotis 

Join us on Telegram and Facebook

@PanagiotisCharalampous
Copyright © 2024 Spotware Systems Ltd. All rights reserved.
The services provided by Spotware Systems Ltd. are not available to citizens or residents of the USA. Neither is the information on our websites directed toward soliciting citizens or residents of the USA.