How is the opening of a long position in the euro / dollar parity?
If an investor takes a long position in the euro /
dollar parity, euron predicts that it will appreciate against the dollar. So he
buys in the euro / dollar parity. Take a look at the process for opening a long
position with an example.
Sample:
Leverage Ratio: 1:10
Euro / Dollar Buying Price: 1.08355
Parity: Euro / Dollar
Position to be taken: Euro long - dollar short
Action: Buy
Base Currency: Euro
Opponent Currency: Dollar
Transaction Amount: 100,000 euro
Transaction Cost: $ 1,08355
Required Coverage: $ 1,083.35 (or 1,000 euros)