Having your Account in Euros or Dollars?

Hi,

i´m from germany and i usually trade the gpb/usd and the eur/usd.

my account was in euros and is now in dollars. i had to that because my riskmanagement didnt work with the euros.

now i have my account in dollars but the problem is that if i transfer money from my trading account to my account in germany the euro has changed its value.

would it be better to have the account back in euros?

let it in dollars, because as you said, your risk management doesn't work well with euros.

who cares if it lost value, concentrate on making pips, and in the future you won't really care because your account grows and grows.

Open a sub account in Euro.
Make sure that you can transfer from your main USD account to Eur sub account through telephone.
Most broker charge you only 1 or 2 pips for exchange rate.
When you want to tranfer money to Deutschland, tranfer USD to Sub Eur account and then from sub account to your Detschland bank.
There is a very interesting way to hedge your USD by having a Eur/USD long. Can't teach you here.
Good luck

What are you asking? Whether you should change your account back to Euro's depends on whether you think the Euro is going to appreciate or depreciate against the dollar. If you think it is going to appreciate then convert your account back into Euro. If you think it is going to depreciate then keep it in USD. If you're not sure but don't want to risk it then you can off-set your risk by taking a reverse trade on your account. By holding your account in USD you are effectively short on EURUSD, you can spread the risk/hedge by entering a long position to an equal value of your account.

Whether you have made money depends on when you funded your account. If it was when EURUSD was trading above the current price, then congratulations you unwittingly made money on that transaction. If it was below then hard lines bud, your account will be exchanged back for less Euro's than you funded it with if you had not made any profits or losses otherwise.

i would say keep it in euros just because thats the currency you use at home. because of exchange rate fluctuations, the value of dollars relative to euros is going to change, but the value of a euro compared to itself wont. it's just a more stable bet. for me, i would keep all my accounts in USD because i'm in the US. if i was in england, i would keep them in GBP you know? same for euros.

yeah, but if you trade gbp/usd you get paid in dollars and not in euros.

i use riskmanagement and if i have euros as the main currency the numbers for profit and the numbers for my riskmanagement are different.

if i got paid in euros i could keep the euro account.

Wow, this thread made me think. So it means it would be useless if you gain pips in USD because you have to trade your currency again back in EURO?

yeah thats right, if you dont live in the usa or another country with the dollar as the main curreny.

i still have my account in dollars. right now its a good thing because the euro is going south and every earned dollar is getting more value.

the bad thing is if the euro recovers and is going up again.

ok, this is an old thread... but i was thinkig about the topic the last couple of days and today i found this thread...

so... this is what i come up with...

i live in EU so EUR is my "living" currency....

now lets assume EUR/USD is at 1,4000
i have USD acc at the broker... 1 pip si 1 usd
i have another acc at the same broker in EUR... but here 1 pip is 0,7 USD

now i earned my money in EUR... lets asume its 1.000 EUR... and i will need EUR when i withdraw from my fx acc so i can buy food, car, etc...

if i transfer my 1.000 EUR to my USD acc ... i would have a balance in that USD acc of 1.400
if i transfer my 1000 EUR to EUR acc it would be 1000 EUR

now the difference is in pip value!

if i would limit my risk like this: every 100 units of whatever curreny is 0,01 lots... (whatever currency i meant eur or usd)

... when i have 1000 EUR in my acc my lot would be 0,10 ... so every pip would be 0,70 EUR

1000 EUR ... 0,10 lot... 0,70 EUR per pip

but... if i have my capital in USD... remember i have 1000 EUR... and i transfer that amount to USD acc... i have 1.400 USD in my acc... that would mean:

1400 USD ... 0,14 lot... 1,40 USD per pip

and this is where the difference begins... more capital money... larger lots... more earned money...

now do some math and asume that you earn 20 pips per day... every day... for a year... no withdrawals .. you will see a difference... (not so big with 1000 eur... but still)

so ... i would say ... as long as EUR/USD is not below 1.00 ... even thou i live in EU and i spend EUR every day... i would open a USD acc...

but the question is how much would USD be worth a year from when you opend acc?!?

what do you think?