fx_gta_trader
Forum Newbie
I got a very basic question.
Assume my account currency is CAD and I want to place a buy position of EUR/USD. This simply means that I am buying the base currency and simultaneously selling the quote currency.
As far as I know, I'm buying EUR with my home currency CAD. However, does that mean MT4 first buys EUR with USD and then it converts EUR to CAD? For example, if I want to buy 10 EUR, I have to pay $11.36 USD which is equivalent to $15.10 CAD. As a result, I'm paying $15.10 CAD to buy 10 EUR which means I'm selling CAD to buy EUR. I'm not selling the quote currency USD to buy EUR which contradicts this statement "This simply means that I am buying the base currency and simultaneously selling the quote currency."
It looks like I'm trading EUR/CAD instead of EUR/USD.
I'd appreciate it if someone clarifies the concept of Currency Pair vs. Home (Account) Currency for me if my above statement is wrong.
Thanks
Assume my account currency is CAD and I want to place a buy position of EUR/USD. This simply means that I am buying the base currency and simultaneously selling the quote currency.
As far as I know, I'm buying EUR with my home currency CAD. However, does that mean MT4 first buys EUR with USD and then it converts EUR to CAD? For example, if I want to buy 10 EUR, I have to pay $11.36 USD which is equivalent to $15.10 CAD. As a result, I'm paying $15.10 CAD to buy 10 EUR which means I'm selling CAD to buy EUR. I'm not selling the quote currency USD to buy EUR which contradicts this statement "This simply means that I am buying the base currency and simultaneously selling the quote currency."
It looks like I'm trading EUR/CAD instead of EUR/USD.
I'd appreciate it if someone clarifies the concept of Currency Pair vs. Home (Account) Currency for me if my above statement is wrong.
Thanks
Last edited: