Hi,
I was wondering if anyone else has had experience with living outside of the US and how they manage their account funding. I live in Australia and recently my current live account held in USD has performed very well while the AUD has dropped in value. But when our dollar gains, my account will effectively lose value. Its not an ideal situation where my account can just fall in value like that depending on the audusd strength.
Below are some possible solutions to the problem. I'm not sure if any of these are available or reasonable, and am after advice on how others may handle this.
1) Open the trading account in AUD . I believe Profit/Loss is in USD which can be converted to AUD at regular intervals, but the funding of the main account is in AUD. This means that I will always have a consistant dollar value to spend in Australia.
2) To attempt to always profit from my base currency account, I could constantly switch from currency to currency. So if AUD is performing well against CHF, I will transfer my funds to CHF, or EUR if that is the better option etc. I would base this on some longer term chart trends.
3) Keep a smaller trading account with the broker, and always have extra funds on hand in an external bank account. I could have a few banks accounts in different currencies and transfer funds to the strongest relationship for AUD. I would withdraw profits from my trading account regularily to store in the external banks accounts.
Another thing about opening an account in AUD that I'm uncertain of is..... how does it possibly affect any money management scripts/code that I might use. ie, if I want to aim for a $200 profit on the trade, and I have a script that calculates my lot size automatically, do I need to modify that code to take into account some extra conversion?
For instance $200 USD would actually equate to $320 AUD. I guess one solution to this question would be to find a boker with an AUD demo and see how the scripts go. (kind of answered my own question as I typed ).
Are their any other adverse affects of funding a Non-USD trading account?
Any other ideas or recommendations would be greatly appreciated on this topic.
Thanks,
Matt
I was wondering if anyone else has had experience with living outside of the US and how they manage their account funding. I live in Australia and recently my current live account held in USD has performed very well while the AUD has dropped in value. But when our dollar gains, my account will effectively lose value. Its not an ideal situation where my account can just fall in value like that depending on the audusd strength.
Below are some possible solutions to the problem. I'm not sure if any of these are available or reasonable, and am after advice on how others may handle this.
1) Open the trading account in AUD . I believe Profit/Loss is in USD which can be converted to AUD at regular intervals, but the funding of the main account is in AUD. This means that I will always have a consistant dollar value to spend in Australia.
2) To attempt to always profit from my base currency account, I could constantly switch from currency to currency. So if AUD is performing well against CHF, I will transfer my funds to CHF, or EUR if that is the better option etc. I would base this on some longer term chart trends.
3) Keep a smaller trading account with the broker, and always have extra funds on hand in an external bank account. I could have a few banks accounts in different currencies and transfer funds to the strongest relationship for AUD. I would withdraw profits from my trading account regularily to store in the external banks accounts.
Another thing about opening an account in AUD that I'm uncertain of is..... how does it possibly affect any money management scripts/code that I might use. ie, if I want to aim for a $200 profit on the trade, and I have a script that calculates my lot size automatically, do I need to modify that code to take into account some extra conversion?
For instance $200 USD would actually equate to $320 AUD. I guess one solution to this question would be to find a boker with an AUD demo and see how the scripts go. (kind of answered my own question as I typed ).
Are their any other adverse affects of funding a Non-USD trading account?
Any other ideas or recommendations would be greatly appreciated on this topic.
Thanks,
Matt