# Starting off currency



## Szemen (19 October 2008)

The one thing that has been bugging me is this. Now, if I open up an account with AUD$100 for easy example. That broker allows me a leverage of 10:1, thus giving me AUD$1000 to exchange around.

Now, If then buy AUD/JPY say at 70. Then that would mean I'm buying AUD from JPY...How does this work? Wouldnt it need to convert multiple times when selling that as well? DOes this make sense at all?


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## Seneca60BC (19 October 2008)

Depends what your base currency is - if your long AUD/JPY, this means you are buying AUD against the JPY and hence will need a margin.  If your short, this means your selling your AUD and you will not need a margin.

So it is all based on the AUD, not the JPY - your not buying or selling JPY.


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## Underpants Gnome (19 October 2008)

Seneca60BC said:


> Depends what your base currency is - if your long AUD/JPY, this means you are buying AUD against the JPY and hence will need a margin.  If your short, this means your selling your AUD and you will not need a margin.
> 
> So it is all based on the AUD, not the JPY - your not buying or selling JPY.




This is a good example of why you shouldn't take advice from people on forums 

To get you started, have a read of this. By the time you get to page 10 you should have a decent understanding of the mechanics of forex trading. Note that the authors of that site recommend a starting capital of at least $10,000. Most people you talk to will agree that $100 is nowhere near enough to start trading with.


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## Szemen (19 October 2008)

Underpants Gnome said:


> This is a good example of why you shouldn't take advice from people on forums
> 
> To get you started, have a read of this. By the time you get to page 10 you should have a decent understanding of the mechanics of forex trading. Note that the authors of that site recommend a starting capital of at least $10,000. Most people you talk to will agree that $100 is nowhere near enough to start trading with.




oh no ahaha, The $100 was mearley an example that gave out neat clean figures so it was easier to understand

edit: but I will read through that, and try and get the ins and outs. I'm Onada playing the game as well.


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## Underpants Gnome (20 October 2008)

Well with places like easy-forex.com advertising $100 minimum accounts you never know!


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