QUOTE(Cubalagi @ Dec 16 2019, 10:27 PM)
U hv asked this Q many times..😆
What matter to u is the US underlying asset. In terms of currency, the EUR is just an intermediary currency.
I don't trade in Europe, but I do trade HK in Chinese stocks/ETF and I experience the same effect. HKD here is another intermediary currency. Basically the Chinese stocks, say Tencent, earn mostly in RMB, but the stock is trading in HKD, which is pegged to USD. In times of RMB strengthening* vs USD (hence HKD), the stock will outperform in HKD terms. This is because the profit is now more in HKD terms.
* However, RMB is closely correlated with MYR, so usually you will see MYR strengthening as well, nullifying the gain from MYR perspective.
So, if the Euro is depreciating vs US, all others things being constant, the stock will go up in EUR terms. So u shouldn't worry.
thanks for the response, I've accepted this after you last reply and much deliberation.
The question is, is it smart to hold the intermediate currency in cash in the trading account?
that means I have a balance of a few thousand euros, sitting there waiting for a buying opportunity.
As you said, it's ok the hold the EUR-denominated US-underlying stocks. What about EUR cash in the trading account?
Should I change the EUR to SGD first and wait?
This post has been edited by moosset: Dec 17 2019, 12:39 AM