Hi guys, would like to find out, if I open a trading account with a base currency of SGD (funds stored in SGD), and I go long on the EUR/USD pair.
Does the broker automatically convert my SGD funds to USD first before going long on the trade (buying EUR with USD)?
If so, wouldn't I make some losses in the event that the USD loses its value against the SGD later at the end of the trade?
What usually happens in such situations? Hope someone can help me out with this.
Thanks in advance!
Does the broker automatically convert my SGD funds to USD first before going long on the trade (buying EUR with USD)?
If so, wouldn't I make some losses in the event that the USD loses its value against the SGD later at the end of the trade?
What usually happens in such situations? Hope someone can help me out with this.
Thanks in advance!