Jump to content

Confused with base currency exhange


Recommended Posts

Hello long term index trader (on other platforms) new to FX. 

My base currency is SEK but I have so far only played around with EURUSD in a demo account trying to learn the FX profession. 

How is the exchange rate determined from SEK to EUR when I enter a trade? Is it per tick intraday? Does this mean a gamble on EURUSD is as much a gamble on SEKEUR? Is this exhange taken into account in the demo account or will the fee for exchanging SEK to EUR be a nasty surprise once I go live? 

Or am I overthinking this? 

Link to post
  • 1 month later...
  • 2 weeks later...

The answer to your question is that there will not be a nasty surprise. You will lose only 0.3% on the P/L transfer to SEK at the END of the trade. So that is only a tiny bite out of the exact profit or loss, not on the underlying. You are likely already paying this on your demo account, but it was too small to detect.

The exact details depend upon whether you have a CFD or spread betting account. In your case (I am guessing) of a euro-denominated spread bet on EUR/USD making EUR 100 profit/loss, you will receive EUR 99.70 / pay EUR 100.30 worth of SEK. It doesn't matter that the underlying may be EUR 100,000, that doesn't enter into the calculation.

Your demo account is identical to a live account intra-day. (But it doesn't reflect overnight finance charges, where the 0.3% currency conversion charge to SEK, though still there, will be lost in the rounding error.)

Link to post

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • General Statistics

    • Total Topics
      13,746
    • Total Posts
      68,527
    • Total Members
      57,389
    • Most Online
      5,137
      14/01/21 09:51

    Newest Member
    Amiiiro
    Joined 23/01/21 20:28
  • Posts

    • yes the twitter poster did mention the 1 month lag but what is the point of you posting a link to an article on the total deaths for 2020 dated in October hahaha.   as you can see the 2020 data is in line with previous years and that's the point. A pandemic should be causing far in excess of normal deaths and in Spain, as in more and more countries as the data comes in, it definitely has not. Not sure why you keep embarrassing yourself maintaining the farce when long since the data has proved  your beloved lockdowns to be not only useless but actually damaging. If only everyone had had their pay stopped for every lockdown then there would have been none at all (just like Sweden).   .
    • Article from EFE agency proving this report wrong.  https://www.efe.com/efe/espana/efeverifica/el-numero-de-muertos-en-espana-2020-no-es-menor-al-anos-anteriores/50001435-4381326
    • As homework try to translate the first sentence right below the table. This is a picture that has been moving around since the beginning of this month. It is fish bait for the right-wing fellows in Spain, they love this kind of fake reports.  It is interesting that you are now posting it as well, very interesting.
×
×
  • Create New...