Stock Trading involving a foreign currency.

I have created a simple spreadsheet to help you in calculating your stock purchase that is exposed to foreign exchange fluctuations,(e.g US shares)

As you can see from the below example, even when you sell your shares when the share price has gone up, you have actually made a lost of $10 (we have not even added the trading fees yet). Even thou your local currency have strengthen against the foreign currency(which is a good thing), but that has impacted the "value" of your "foreign currency" which is those shares that you are holding.

Although you do not have much control over the fluctuation of the foreign currency, whenever you are thinking of selling your US "assets" and converting it back to your local currency, do take note of the below example and calculate your gains(if there are any) before unloading your US "assets".

Example :
Although the share price has gone up, but...............
Use the simple spreadsheet to check your gains....

You can download the spreadsheet here.

Download Password is : bartman88.blogspot.com

Disclaimer : I will try as far as i can to keep the information or techniques used in this post as accurate as possible. But I will not be responsible for any use of this information or techniques nor accept any liability (whether arising out of negligence or otherwise), for any injury, damages, costs, expenses and losses suffered or incurred by a person where such a person has relied on this information or techniques.