Which currency as base currency in my account?

[artful_dodger]

Hi guys

I was wondering about the following.

I have a modest trading account in sterling. I have the option of converting this into another currency to trade with on IG Index.

As far as I can see, as long as the markets are going up again the dollar is weakening. As soon as they fall again money flows into the dollar and yen as a safe haven.

So, I wondered about converting it into dollars in the meantime as I can forsee parity with the dollar in future?

Sorry if this is in the wrong section!

R

 

[Rhody Trader]

If you shift your forex trading account into another currency then basically you're speculating at two levels - your normal trading through the account and the wider one with the account base currency. Do you have a proven strategy to time your shifts from GBP into USD in your account? Are you experienced forecasting the wider GBP/USD rate in the timeframe applicable to shifting your base currency? If not, then you're just trading without a plan or strategy on a different level.

 

[artful_dodger]

Hi

In my mind I see that when the markets rise, all systems are trying to revert to pre-crash status which included a weaker dollar.

China wants the US to have a strong dollar policy to protect the treasuries...it also wants the US to make sure deflation runs it's grizzly course.

So when the markets turn again I expect the dollar to strengthen once again as it becomes the safe haven along with the yen. This happened in the 30's too....the dollar went very high versus the sterling.

So I was thinking, when the markets turn, I would change into dollars or yen.

R

 

[foredog]

Keep it in your home currency, that way every trade will convert back when closed and the differences in rates will be marginal as you'll only be converting a few £££ at a time.

If you try to be to clever and mess it up all your trading profits could be lost and when you convert your account back into your native currency it may show a loss even though you made a profit.