Back to Base automatically converts any realised profits and losses, adjustments, fees and charges that are denominated in another currency, back to your Base Currency – before applying them to your account.
If your Base Currency is pounds sterling and you place a CFD trade on the Wall Street Index, as the Wall Street Index is a US dollar denominated market, your profits or losses, as well as any additional charges when applicable (such as commission, financing, dividends, corporate actions etc.) will be denominated in US dollars.
Back to Base (Currency Conversion) means that all of your realised profits and losses, adjustments, fees and charges will be automatically converted back to your Base Currency, which in this example, would be pounds sterling.
Traders with positions in markets that are priced in a currency that is not of your Base Currency and placed from the 28th April 2012, will be affected. However, traders’ existing cash balances – which precede the 28th April 2012 – will not be affected.
We will always apply commercially reasonable rates for Back to Base (Currency Conversions). Conversions and the rates applied will be disclosed on your contract notes and statements.