If I am trading a pair that does not contain $US such as EUR/JPY and my account is in US $, is my trade subject to US $ fluctuations during the time I am in the EUR/JPY trade? I don't understand what actually takes place if I put on a EUR/JPY trade.
yes. http://www.investopedia.com/university/forexmarket/ Investopedia tutorials will cover everything you need to understand about what's going on (in forex and outside) to get started. No need for other replies to this thread.
I had a look through that and couldn't find the answer. The quote currency of EURJPY is JPY so the P/L from any trade will be denominated in JPY. That must be converted to USD in your case. The exact rate you get when your P/L is converted in to USD depends on your broker and when they do that conversion. Here's an example: USDJPY=100, EURUSD=1.5, EURJPY=150 You go Long 1 lot EURJPY 100,000EUR = 15,000,000JPY say JPY falls 1% against EUR and USD USDJPY=101, EURUSD=1.5, EURJPY=151.5 You close your position 100,000EUR = 15,150,000JPY profit = 150,000JPY converts to about 1,485USD So on that 1% move you only got 0.99%. Conclusion: It's not worth worrying about!