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What’s the currency you hold in your forex broker account?


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What’s the currency held in your broker?

 

This is one very important thing that every forex trader should know.

What’s the currency that you hold in your forex broker account?

Regardless of which country are you living in.

Your currency denominator in your forex account should NOT be in USD.

This may come as a BIG Shocker to you.

And if your denominator is in USD. Change It Now!

-Important Forex Tip – What’s the currency held in your broker?

 

Here’s why:

My Example: I’m based in Singapore. Around 2-3 years back, the USD to SGD (singapore dollar) is at the rate of 1 : 1.4 (est)

-Therefore $1 USD is equals to $1.4 SGD.

-But today $1 USD is equal to $1.1~ SGD.

So had my forex account denominator be held in USD. I will be making a huge loss!

Just for example. If your capital is $100,000 USD 3 years back, if i convert it back to SGD. It will be $140,000 SGD.

And supposedly, if i never traded the account. Today my capital left will be $110,000 SGD.

Meaning i made a loss on my account even though i did not even took a single trade!

Do you see what i’m driving here.

Even though if i had traded the account, my profits would have been wiped off or massively reduced due to the currency difference.

Which also means that you are practically wasting your time trading forex as none of your profits could be seen.

-Important Forex Tip – What’s the currency held in your broker?

 

So what now?

-Here’s the fact.

The USD will continue its way down, unless there is a chance of them clearing the trillion of dollars in debt. (chances are really slim)

Til then, the USD will at least not grow back to what it once was.

So if you are living outside of the United States.

You should either put your currency in your own country’s denominator or place it in a country which has a stable economy (eg. Singapore is one of them)

And if you are living in the United States.

You should change your denominator to another country which has a stable economy. (Not EUR – due to its mounting debt)

Some brokers will not allow the change if you are living in the United States but some will.

So if those brokers doesn’t allow you to change your denominator to other currency.

CHANGE THEM!

-Important Forex Tip – What’s the currency held in your broker?

 

-By changing your denominator to other currency, and if the usd continues falling against the currency you put in.

You will see a growth in your capital without even trading!

So that’s Extra Profits! (or even to cover your losses you made through silly mistakes)

Let me know if this post has helped you.

Do share it and like it! Cheers!

Ezekiel Chew, Asia #1 Forex Mentor from www.asiaforexmentor.com

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  • 3 months later...

I hold the USD, EUR and the GBP in my trading account s and the reason for this is to make orr take advantage of any change locally in my country particularly when I want to convert it. I have been doing this over the years and I have made a considerable profit from this idea.

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I hold the USD, EUR and the GBP in my trading account s and the reason for this is to make orr take advantage of any change locally in my country particularly when I want to convert it. I have been doing this over the years and I have made a considerable profit from this idea.

What is your broker site? Because you can't have base funds in different currency at once. Its either you use one as your base currency. That's why I'm asking what broker site do you use so that I can check it and see it for myself.

You can trade major pair. But once you close all of your open position its going to convert back to your main currency. So how can your broker know that when you close your position your funds will be converted back to usd or eur or gbp if you can have main currency at the same time.

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  • 7 months later...
  • 1 year later...

The base funds that almost every body that is trading in the forex market has is the US dollar. I don't know if it is possible to store another type of currency in the trading capital if it is not the US dollar. May be the broker is going to convert it.

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i just had a look on your words and to be accurate didnt accept it totally ....for example in egy here the dollar was 3times like bound but now it is 6.98looool so i think beside that dollar is much safer ...it is also more profit

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pairs basically distinguish by 2, exotic and major pairs. exotic pair serve low volatility which lead traders to gain small profits only. target will be hit after long period of time. while if traders choose to trade in major pairs, they'll gain high amount of profit even in single day. since majors offering high daily average range movement.

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  • 2 weeks later...
  • 4 weeks later...

Right now majority of the pairs that I trade is aud/usd/ I also trade other major pairs like eur/usd and so on. I do know that the more pairs I trade the more chances I can make money. This is the main reason why I have lot of trading accounts and I trade different pairs in each trading account that I have. In hoping that I can be rich some day.

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well for me i only prefer and also decide to trade with a US dollars alone because i dont want anything that can cause me a confusion and also it is easy for me to exchange in my country so i prefer us dollars

Do you know that this thread is all about? You can't just say you going to use US dollars. How can you trade if you only have US dollars? If you bother to do some research or even just join a demo account you will notice that we trade in pairs in forex trading. We can't just trade US dollars. What will you going to do exchange your US dollars to another US dollars? lols.

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Well I answered a similar question at another forum, my broker also has the currency in USD, I want to ask is that like if we change the currency to for example KWD and then withdraw in a payment processor which shows in USD, how would the money go would it be converted to from KWD to USD automatically.

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  • 2 weeks later...

There are numerous currency which a trader can maintain on to but the key currency which I do take to trade is the EUR/USD which is basically the greatest and that's it is so A lot risky so I like buying and selling using this pair which is actually the very best
 

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majority traders prefer to trade by use major pairs. traders know that daily range movement very high in major pairs, so, easy to them to implement scalping technique. traders has chance to trade everyday and even gain everyday profit. if they are able to always be accurate in predict future movement of market.

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greater part traders choose to trade by use key pairs. traders realize that daily variety motion very high in main pairs, so, very easy to them to put into action scalping approach. traders has chance to trade everyday and even gain every day earnings. When they are in a position to usually be accurate in predict long term movement of sector.

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Right now majority of the pairs that I'm trading is aud/usd and I do hope to hold this pair for my own advantage. I do know that the interest rate in here is really good and this is the main reason why I focus on having this pair so that I can earn more and more profit in here. Eventually I can say I can end up as a successful forex trader in here with this pair.

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  • 2 weeks later...

I mostly trade the EUR/USD pairs. That has been much favourite currency pair. And also, it is highly volatile which makes the whole difference in what I want to see from a pair. Some other times as well, I might have reasons to trade on the USD/CAD or some less volatile market but that depends on analysis.

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Well I answered a similar question at another forum, my broker also has the currency in USD, I want to ask is that like if we change the currency to for example KWD and then withdraw in a payment processor which shows in USD, how would the money go would it be converted to from KWD to USD automatically.

I don't know what broker site you are in. But in my experience its not automatic. I mean theirs some fees involve that you will get lower value if you going to exchange it. My suggestion is that you just cashout in US dollars and just use the processor that you use to convert it to KWD if you want. Because if you going to exchange your usd dollars to kwd right away I'm sure you will earn less because of fees of exchange.

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Most traders tend to get more attracted to popular pairs, theirs is mainly to avoid the high spread being allocated to unpopular pairs. It is wise for a trader to consider a lot of things when it comes to choosing a pair and it has to be the kind of trader he is and also the one he is good at.

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  • 2 weeks later...

I'm holding aud/usd right now and some how I do make some good profit doing hedging in this pair. I do know that its take time for my hedging account to mature but once its mature I can cashout and make profit no matter that current trend is. This is the main reason why I prefer to trade using hedging strategy. Its a good long term strategy. As long you have swap free account though.

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No matter what major pair like usd/euro is still the best and the most popular pair which any trader can even think of for me this is the right pair which I normally targeted at and its the best for me so there is no turning back the best thing is to understand the pair properly

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I guess all of us are in forex trading using US base currency except if you are living in Europe then its wise to use euro or using your own country currency if its available in your forex broker site. I do recommend that we spend more time learning how to trade as eventually we can end up as a successful forex trader. I'm sure we are in here to earn big.

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