Account currency meaning: the base currency of an account

What is account currency

Account currency is the currency in which a trading account's balance, equity, margin and profit or loss are shown and settled.

It is also called the base currency of the account or, in MetaTrader, the deposit currency. Do not confuse it with the base currency of a currency pair. In EUR/USD, EUR is the pair's base currency. That has nothing to do with the currency your account is kept in.

Formal definition

Account currency is the unit of account for all monetary values in a trading account. Every result is converted into it at the moment it is booked. This includes realised and floating P/L, margin requirements, swap fees, commissions, deposits and withdrawals.

A trade's P/L first arises in the quote currency of the instrument, the second currency in a pair. It is then converted into the account currency.

Worked example (hypothetical)

A trader has an account in US dollars and opens a position on EUR/GBP.

1. The price moves in the trader's favour. The profit is first calculated in GBP, the quote currency of EUR/GBP.
2. The platform converts that GBP amount into USD at the current GBP/USD rate.
3. The balance shows the result in USD only.

Two effects follow:

• The same EUR/GBP move gives a different USD result if GBP/USD has changed in the meantime.
• If the trader measures wealth in PKR, the USD balance changes in rupee terms whenever USD/PKR moves, even with no open trades. This is currency risk.

To see real figures for your own pair, lot size and account currency, use the calculators.

Where the term appears

• MT4 and MT5. The Trade tab of the Terminal window shows Balance, Equity, Margin and Free Margin in the deposit currency. The MT5 strategy tester asks you to choose a deposit currency before a test. See MetaTrader 4 and MetaTrader 5.
• Reports. An account statement lists every entry in the account currency.
• News and finance. Phrases such as "dollar-denominated account" or "PKR-based investor" describe the same idea: the unit in which results are measured.

If you use Exness, check which account currencies are currently offered in the Exness personal area or on the official site.

Edge cases for experienced traders

• Deposit conversion. If you fund an account in a currency other than its account currency, a conversion takes place. The rate and any cost depend on the payment provider and the broker. Check the current conditions before you pay.
• Cent accounts. These show the balance in cent units of a currency, so displayed figures look larger than the money behind them. See Standard Cent account.
• Margin. Margin for a position is calculated in the instrument's terms and then expressed in account currency. A move in the conversion rate can change your free margin without any price move on the traded pair.
• Changing the currency. Many brokers do not let you change the currency of an existing account. Opening a new account is the usual route. Check the broker's rules.
• Pakistani rules. Per the SBP, remitting foreign exchange to overseas forex/margin/CFD platforms is not allowed through any payment channel (FERA s.5(1)). Per the SECP, offshore platforms have no Pakistani licence or oversight and offer no legal protection or recourse. More on this is in Regulation and Safety.

Leveraged forex and CFD trading can lose money fast, whatever the account currency.

Related terms

• Currency risk
• Currency appreciation and currency depreciation
• Contract size
• Exposure
• Equity curve
• Trading glossary

Frequent questions

What is account currency in simple words?

It is the currency your trading balance and results are shown in.

Is account currency the same as the base currency of a pair?

No. The base currency of a pair is the first currency in its quote. The account currency is the unit your account is kept in.

Why did my profit differ from what I expected?

P/L is first calculated in the quote currency and then converted into account currency at the current rate. A move in that rate changes the result.

Does the account currency affect swaps and commissions?

Yes. They are booked in the account currency after conversion.

Where can I see my account currency in MetaTrader?

The Trade tab of the Terminal window shows Balance, Equity and Margin in the deposit currency.