Hey guys I got a question regarding indices and cfds.
Indices are quoted in points rather than in a currency.
Lets assume person A opens an account with 1000€ and person B opens an account with 1000$.
Both buy 1cfd contract which has the DOW as underlying. Will the € position be converted into $ first or will they bot gain and loose the same % of their balance if the Dow moves? Is a cfd position on indices hedged against currency volatility?
Opposed to that Crude Oil is quoted in Dollar and if you speculate with it you always have to consider the EUR/USD movement.
Yes I know this place is called Forexfactory but I assume that a lot of people know the answer of what I am asking.
Indices are quoted in points rather than in a currency.
Lets assume person A opens an account with 1000€ and person B opens an account with 1000$.
Both buy 1cfd contract which has the DOW as underlying. Will the € position be converted into $ first or will they bot gain and loose the same % of their balance if the Dow moves? Is a cfd position on indices hedged against currency volatility?
Opposed to that Crude Oil is quoted in Dollar and if you speculate with it you always have to consider the EUR/USD movement.
Yes I know this place is called Forexfactory but I assume that a lot of people know the answer of what I am asking.