Exchange rate from account USD to base currency?

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 

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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

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 

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