“If I deposit money in VND, can I trade other currency pairs?”
“If I want to “buy EUR/USD, do I need EUR or USD?”
“Can I withdraw my profits in VND? Or can I only withdraw in other currencies?”
If you are a beginner, you probably have the same questions above. Today’s lesson will help you answer these questions!

Are you trading real currency pairs?

In the previous lesson,
you leanred that EUR/USD = 1.1050 USD
means you will pay 1.1050 USD to buy 1 EUR
at the currency exchange counter.

When trading at a foreign exchange counter, you need to go to the counter and bring the actual currency with you.

But Forex trading is not like that. When trading a currency pair,
you are not actually buying or selling the currencies,
just predicting whether the rate of that currency pair will increase or decrease and make the trade!

In Forex trading, when you trade EUR/USD, you do not actually own the EUR or USD.

You just need to predict whether the exchange rate of that currency pair will increase or decrease and make a trade. If you predict correctly, you will profit from the exchange rate difference.

If you predict an increase in the EUR/USD exchange rate, place a “Buy EUR/USD” order.

Similarly, if you predict a decrease in the EUR/USD exchange rate, place a ” Sell EUR/USD” order.

You can withdraw your profits after making a trade with cash.Therefore,traders only need to predict how the exchange rate will change and place an order on the trading platform.

So if you only have Vietnamese Dong, can you trade other currency pairs?

Hirose’s trading account has a base currency of USD.

After you deposit funds in Vietnamese Dong, the VND amount will be converted to USD (the trading account’s base currency)
and reflected in your trading account balance.

For example: you deposit 2,400,000 VND into your USD trading account,
the amount of 2,400,000 VND will be converted into $100 and reflected in your trading account balance.

**Note: Conversion rate will be calculated according to that day’s exchange rate. (Updated once a day)

Then you trade and get $100 profit. Your trading account balance will become $200.

When you make a profit, you want to withdraw your capital and profits to your bank account.
The balance of $200 in the trading account will be converted into VND and transferred to your bank account.

**Note: Conversion rate will be calculated according to that day’s exchange rate. (Updated once a day)

In Forex trading, all profits and losses are automatically calculated on the trading platform and reflected in the trading account balance in USD (the account’s base currency).

So you can deposit in VND and trade all other currency pairs.And don’t forget, Hirose always supports quick and convenient deposits and withdrawals via domestic banks!

Lesson on “When depositing money in Vietnamese Dong, is it possible to trade in other currency pairs?” finish here.

Let’s complete the quiz to see if you understand the lesson!

In the next lesson, we will guide you about the Candlestick Chart.
Please continue to follow.
If you have any questions, please contact us.