Base Currency of Trading Account

Hi guys, would like to find out, if I open a trading account with a base currency of SGD (funds stored in SGD), and I go long on the EUR/USD pair.

Does the broker automatically convert my SGD funds to USD first before going long on the trade (buying EUR with USD)?

If so, wouldn't I make some losses in the event that the USD loses its value against the SGD later at the end of the trade?

What usually happens in such situations? Hope someone can help me out with this.

Thanks in advance!

Yes, broker automatically converts your SGD to USD to go long in EUR/USD currency and yes, you'll lose if USD/SGD rate drops while your position is open. The same happens when traders with USD-based account trade with EUR/GBP, GBP/JPY and other non-USD currency pairs.

Thanks for the reply! Are there any ways we can minimize such losses in this kind of situations?

I don't think so. You just have to take into account not only the trend in the currency pair that you trade (Y/X) but also the trend in X/SGD in your case. But since the loss/gain in the second pair isn't leveraged by the broker, the size of it isn't very big.