IDEALPRO: I don't get it!!!

Discussion in 'Forex Brokers' started by short&naked, Oct 5, 2008.

  1. I have been trying to figure out how IDEALPRO deal with the following issue:

    There are two ways to enter into a forex transaction:


    1) You take physical EUR and convert it to USD as you would at an exchange booth. In other words, in order to realize your gain in terms of EUR, you would have to convert the USD back into EUR.


    2) You have a base currency. And with this base you borrow EUR, then you sell the borrowed EUR to buy USD. Your profit is realized in your base currency. In other words, there is a 3 way transaction between your base, the currency you borrow and the one you buy with the borrowed currency.

    I still don't understand how IB deals with these. Are both methods possible and if so how?

    Thank you.
     
  2. Search the board for idealpro. One of the ib reps explained it very well a year or so back.

    Basically you either sell the amount you bought so that you get the denominator currency or you sell a proportional amount to get the numerator currency.

    So either is possible. One needs a calculation of amount * old ratio over new ratio (or vice versa).
     
  3. FGBS

    FGBS

    Don't want to be a prick, but will. You criticize Neke for gambling when he fullwell knows and is willing to risk a large percentage on any single trade, yet you come on here and show a complete lack of understanding for simple forex transactions. Seems like double standards. It seems that while you may try and protect the novice from Neke's risk-reward ratio's with what you try and make out to be experienced advice you come on here showing the complete lack thereof.
     
  4. FGBS ... yes you have achieved "prickhood."

    I traded for nearly 10 years without understanding how to do the forex convolutions required here. A lack of knowledge in one (specialist) area doesnt' make criticism in another invalid. IM(H)O :)
     
  5. FGBS

    FGBS

    Very true but it does take away a lot of the credibility of the writer when he writes as if he knows how it should be done (better) and brings down a succesful trader to the level of gambling and then comes on another thread and doesn't get a simple balance equation.
     
  6. nkhoi

    nkhoi Moderator

    can you post the ratio or is it a secret?
     
  7. Been trading forex for 10 years. Does this mean I have to understand how every brokerage house handles fx transactions? No, it doesn't. Btw, get over my comments about Neke.
     
  8. It's in his previous thread ... and it's good stuff.
     
  9. Neke doesn't even trade Fx, so WTH are you talking about? You are simply trying to rip apart anything I say, since you are pissed that I called Neke on his gambling habits... so, crawl out of Neke's butt, and leave this thread or...

    If you are so smart, then explain how IB handles Fx... go ahead, I'm waiting.
     
  10. FGBS

    FGBS

    Account starts flat, Base=USD

    Buy 100.000 EUR/USD @ 1.3600

    -100k Eur
    +136k USD

    when at 1.4 your account will show profit of 4k USD (not 100% sure whether it will be shown in Eur and converted on your statement or directlyin USD on the position line, I'll check this evening when I get to my trading pc.)

    your pnl will b shown is USD's for this trade. If you want to swap any actual cash from one currency to another you can use IDEAL. In the above scenario you recieve interest and pay interest accordingly.

    Hope this helps.
     
    #10     Oct 6, 2008