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buying or selling EUR/USD

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pontuso5
376
pontuso5  
Is there any difference if i have a USD account and buy long on symbol EUR/USD, or if i have a EUR account?
whroeder1
14784
whroeder1  

DeltaValuePerLot() is different because the rates are different. USD account EURUSD is $10.00 per pip exactly. EUR account it's approximately $10USD*1.38EURUSD = 13.80€ per pip.

http://www.babypips.com/school/preschool/how-to-trade-forex/how-you-make-money-in-forex.html

Keith Watford
Moderator
9641
Keith Watford  
WHRoeder:

DeltaValuePerLot() is different because the rates are different. USD account EURUSD is $10.00 per pip exactly. EUR account it's approximately $10USD*1.38EURUSD = 13.80€ per pip.

http://www.babypips.com/school/preschool/how-to-trade-forex/how-you-make-money-in-forex.html

Shouldn't that be $10USD/1.38 ?
whroeder1
14784
whroeder1  
No. USD * EUR/USD = EUR. 1.38 EUR per USD means same motion yields more EURs
Keith Watford
Moderator
9641
Keith Watford  
WHRoeder:
No. USD * EUR/USD = EUR. 1.38 EUR per USD means same motion yields more EURs


It is not often that you are wrong, but I believe this to be one of those very rare occasions.

1 Euro buys 1.38 USD, not the other way round.

Ian Flanagan
549
Ian Flanagan  

Yeh, I my EUR account I have 7.23 EUR per pip.

But be careful, I've noticed different brokers using different lot sizes, some use 100000 of base currency, and some us 100000 of account currency, maybe some would even us 100000 of quote currency.

Always uses WHRoeder's formula: tickvalue / ticksize * Point

The original question should be answer by MarketInfo(Symbol(),MODE_LOTSIZE), right?

pontuso5
376
pontuso5  

OK

But how shall i calculate if my deposit is in CHF? i mean what will the pip value be in buying/selling EURUSD?

And is there any disadvantages with having another currency then EUR or USD when buying on EURUSD pair?

Ian Flanagan
549
Ian Flanagan  

1 point of EURUSD = 1 USD.

1 USD = 1 / USDCHF bid

The disadvantage is you are risking (or hedging) two pairs instead of one

whroeder1
14784
whroeder1  
pontuso: But how shall i calculate if my deposit is in CHF?

As previously stated: alladir: Always uses WHRoeder's formula: tickvalue / ticksize * Point

DeltaValuePerLot() PipValuePerLot()

Alain Verleyen
Moderator
31202
Alain Verleyen  
alladir:

1 point of EURUSD = 1 USD.

1 USD = 1 / USDCHF bid

The disadvantage is you are risking (or hedging) two pairs instead of one

To get it in CHF you need to multiply not divide, you made the same mistake as WHRoeder.

1 USD = 1 * USDCHF quote = 1 * 0.90591 = 0.90591 CHF.

Ian Flanagan
549
Ian Flanagan  
Ah yes, always need a clear head for that
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