Question on behalf of FOREX noob

[MrFizz]

Hey guys,

This question may sound real dumb, but I've searched all over the internet and can't find the answer.

Looking to get into forex trading.

If I'm based in Australia, would I be trading currencies pairs that involve the aussie dollar? e.g. AUD/USD, AUD/JPY, EUR/AUD. Or could I trade other currencies not involving the aussie dollar, such as EUR/USD or USD/JPY???
Thanks in advance!!

 

[CanOz]

Nah you can trade anything....any of the pairs. The broker handles that part. IG markets is a fair deal and they've got a reasonable reputation.

 

[rogblack]

or precious metals a I do through Go Markets

 

[T0BY]

I thought about this the other day. Of course most forex traders use leverage, but if you didn't...
and let's say your account is based in AUD - you want to sell EURUSD.

The moment you open the position, you have converted your AUD to EUR (sold your AUD and bought EUR), and sold those EUR and bought USD.
You put your take profit on the EURUSD chart, 10 pips below where you got in and it gets hit 15 minutes later.
When the tp got hit (closed the position), you sell the USD, buy the EUR, and convert it back into AUD.

But what if in those 15 minutes the EURUSD trade was open - the AUD went up against the EUR. It's possible you could even end up with a loss when it got back into your account (if AUD was stronger than the USD against the EUR at time the trade was closed from when it was opened).

Not using leverage would complicate things a bit, but because most people use leverage (eg. 200:1) the AUD to EUR part is only 1:1 while the EURUSD trade is 200:1 or whatever..

 

[T0BY]

I thought about this the other day. Of course most forex traders use leverage, but if you didn't...
and let's say your account is based in AUD - you want to sell EURUSD.

The moment you open the position, you have converted your AUD to EUR (sold your AUD and bought EUR), and sold those EUR and bought USD.
You put your take profit on the EURUSD chart, 10 pips below where you got in and it gets hit 15 minutes later.
When the tp got hit (closed the position), you sell the USD, buy the EUR, and convert it back into AUD.

But what if in those 15 minutes the EURUSD trade was open - the AUD went up against the EUR. It's possible you could even end up with a loss when it got back into your account (if AUD was stronger than the USD against the EUR at time the trade was closed from when it was opened).

Not using leverage would complicate things a bit, but because most people use leverage (eg. 200:1) the AUD to EUR part is only 1:1 while the EURUSD trade is 200:1 or whatever..

But what if I wanted to buy EURUSD? Would I buy USD with my AUD, and then use that USD to buy EUR? Wait, That doesn't sound right, there can only be one base currency. Alright, I'm confusing myself.

 

[T0BY]

The margin gets converted from AUD to EUR?

 

[lastnight19]

Hey guys,

This question may sound real dumb, but I've searched all over the internet and can't find the answer.

Looking to get into forex trading.

If I'm based in Australia, would I be trading currencies pairs that involve the aussie dollar? e.g. AUD/USD, AUD/JPY, EUR/AUD. Or could I trade other currencies not involving the aussie dollar, such as EUR/USD or USD/JPY???
Thanks in advance!!

Is it real question or joke?

 

[TheDean]

Simple Answer: Yes, you can trade other currencies not involving the Australian Dollar.