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base currency

  • #1
  • First Post: Sep 29, 2006 9:47am Sep 29, 2006 9:47am
One thing I don't understand about Forex, I'm trading a demo account on Oanda.

If my account is in CAD dollars, I then submit a buy order for EURUSD, how does this work? Does my CAD get converted to EUR which are then used to buy USD? Isn't that playing 2 different pairs at the same time? So if EURUSD goes up, but USDCAD goes down, I could actually lose money
  • #2
  • Sep 29, 2006 9:58am Sep 29, 2006 9:58am
Quoting ra300z
One thing I don't understand about Forex, I'm trading a demo account on Oanda.

If my account is in CAD dollars, I then submit a buy order for EURUSD, how does this work? Does my CAD get converted to EUR which are then used to buy USD? Isn't that playing 2 different pairs at the same time? So if EURUSD goes up, but USDCAD goes down, I could actually lose money
How I see this, you have already bought, so your Pocket Money is not affected by the trade only the pair you buy is affected. This an easy way to say it I guess. Maybe someone can explain more Technical.
  • #3
  • Last Post: Oct 3, 2006 2:43am Oct 3, 2006 2:43am
Seems to be the same situation for those on the normally default USD-based accounts who are not living in US.
I am JuMPeR.
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