- Point value in account currency
- Account currency to quote or base currency
- Lot Sizing For Non Account Currencies
it is a trading system called arbitrage, you may search or ask anyone who know that
It has nothing to do with arbitrage.
Forum on trading, automated trading systems and testing trading strategies
toma4186, 2021.08.25 14:20
HiThis is normal and it can affect the performance of a trading strategy. To what extend mostly depends on how long positions are held. There is no solution as the currencies need to be converted anyhow whether you convert your GBP to EUR for an EUR account (and possibly back when you withdraw), or trade EUR/USD pairs with a GBP account.
it is a trading system called arbitrage, you may search or ask anyone who know that
Hi
No you are not trading two pairs. And in your example EURGBP has nothing to do.
EURUSD will give you profit/loss in USD, it will then be converted to GBP using GBPUSD rate. It's a conversion not a trade, and it can not "cancel out any profit".
It has nothing to do with arbitrage.
This is normal and it can affect the performance of a trading strategy. To what extend mostly depends on how long positions are held. There is no solution as the currencies need to be converted anyhow whether you convert your GBP to EUR for an EUR account (and possibly back when you withdraw), or trade EUR/USD pairs with a GBP account.
No you are not trading two pairs. And in your example EURGBP has nothing to do.
EURUSD will give you profit/loss in USD, it will then be converted to GBP using GBPUSD rate. It's a conversion not a trade, and it can not "cancel out any profit".
Thanks for your help.
Of course GBPUSD rate is always moving.
It only means that trades with the same profit in USD (say 100 USD), could depending of GBPUSD rate leads to 72.89 GBP profit (rate = 1.37200) or 72.56 GBP profit (rate = 1.37825) or...
The time you keep your position open doesn't matter at all, what matters is only the GBPUSD rate at the time your position is closed.
Of course GBPUSD rate is always moving.
It only means that trades with the same profit in USD (say 100 USD), could depending of GBPUSD rate leads to 72.89 GBP profit (rate = 1.37200) or 72.56 GBP profit (rate = 1.37825) or...
The time you keep your position open doesn't matter at all, what matters is only the GBPUSD rate at the time your position is closed.
Are saying that the exchange rate is not relevant for opening but only for closing a position? I always thought it was for both.
Are saying that the exchange rate is not relevant for opening but only for closing a position? I always thought it was for both.
How would GBPUSD be relevant to open an EURUSD position ?
It's not, you trade on margin and swap. EURGBP will matter for the margin, GBPUSD will matter for the swap (so in the sense how long you keep the position matters, but it's not related to the topic).
Of course GBPUSD rate is always moving.
It only means that trades with the same profit in USD (say 100 USD), could depending of GBPUSD rate leads to 72.89 GBP profit (rate = 1.37200) or 72.56 GBP profit (rate = 1.37825) or...
The time you keep your position open doesn't matter at all, what matters is only the GBPUSD rate at the time your position is closed.
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