Margin Currency in CFDs

 

Broker A has a CFD for Nikkei 225 using USD as margin currency

Broker B has a CFD for Nikkei 225 using JPY as margin currency


The price rises by 100 basis points. Do you make more profit with broker A if USDJPY goes up at the same time?

 
Alexander Hahn:

Broker A has a CFD for Nikkei 225 using USD as margin currency

Broker B has a CFD for Nikkei 225 using JPY as margin currency


The price rises by 100 basis points. Do you make more profit with broker A if USDJPY goes up at the same time?

technically yes. but negligible if your trade volume is small.

 
Mohamad Zulhairi Baba:

technically yes. but negligible if your trade volume is small.

Thank you

Reason: