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Trading pairs where the account's base currency doesn't match

Discussion in 'Beginners Bootcamp' started by MartyP, Nov 5, 2007.

  1. MartyP

    MartyP Recruit

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    Hi all,

    I am new to trading Forex and was wondering what exactly happens if you buy the USD/JPY pair to open the position and your account's base currency is USD. Since your account would only be funded with USD, would you have to borrow JPY from your broker to make the trade? If you know, I'm wondering what MB Trading does in particular.

    Also, what happens if you buy the exotic pair GBP/JPY and your account's base currency is USD? MB Trading says they will use GBP/USD to determine the buying power in this case. Does that mean they lend JPY and trade the GBP for USD?

    Thanks,
    Marty
     
  2. 3BlackCrows

    3BlackCrows Corporal

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    Will investigate and get back to you MartyP :)
     
  3. MartyP

    MartyP Recruit

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    Thanks for your reply 3BlackCrows and sorry to bump the thread... Did you find anything?
     

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