Not sure whether this is the right area to post this in, but out of all of them, this seemed the most logical.
So I've been dabbling in the DAX futures and have made some money. My broker (Mirus) segregates the Euros in the account separately with an indication of what the conversion rate would be as of that night the account is reconciled. So it seems as though I've got a DOLLAR balance in my account and a EURO balance. How is the EURO balanced converted to dollars -- if ever? -- other than closing out the account and getting the then conversion rate on my Euros converted to dollars and liquidating the account? Or can I notify to broker to automatically convert the Euro balance automatically to Dollars whenever I place a DAX trade?
The following 2 users say Thank You to Hapster for this post:
Think of this...
You didn't "open" a Euro account when you placed the DAx trade ?
There for, by placing the Dax trade the denomination was "created" for you as a Euro Account.
Generally you ask your broker to transfer the Euro's into Dollars, and this will be done, generally, at the rate at EOD.
So now you have an "all" or "only" Dollar account.(again)
Next time you place a Dax trade you will again have "created" a Euro account automatically so to speak.
Again as above, you can ask your broker to have the Euros transferred into your Dollar account (which will generally be done at EOD).
Hope that helps and makes sense.
Every moment I wake up I realize I know nothing, and then I smile...
The following user says Thank You to zt379 for this post:
Then again... I suppose if they don't have a set time that they do the conversion... you could use a chart of the eur/usd to decide when to convert.... in fact if the dollar is declining too fast against the euro don't trade that day ... it will cost you too much... eventually you could quit trading the DAX altogether and just trade the currency conversion of your trading account.....
"Not intended to be a factual statement" John Kyle Senator Arizona
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