Foreign Currency Value If You Invest In A Foreign Market, Does The Share Value Depend Of The Foreign Currency?

If you invest in a foreign market, does the share value depend of the foreign currency? - foreign currency value

Yes, because the currency prices change from time to time. His motto can be particularly at a reasonable price range and to move the share price may, or the share price may be constant and fluctuating exchange rates. In fact the two are related and may the strength of the other, depending on industry shares of the company is in. If you are exposed mainly to changes in exchange rates for any reason, the value can change dramatically.

Example (not including the Commission, currencies)

Do you have part of America.
The participation in society of the United States: $ 200
Go to your broker and agents to 100 pounds sterling for the exchange rate is £ 1 = £ 2 He changes the money into dollars, and you want to share back.

Overnight, the pound fell against the dollar. £ 1 now receives 25 cents. You still have to pay € 800 to buy the $ 200 price. Its share value has increased. If someone play the game you should spend £ 800 and £ 700 profit to buy.

HimThey say that the EUR will be raised, but. £ 1 that you are getting $ 4. Well, if you sell the shares and then collect the money in the service of books to get back only 50 pounds. I lost 50 pounds from his initial investment of 100 €.

People buy and sell in foreign markets, based on information about how the market is going, how will the forex market. They have an additional variable draw here, so there are more opportunities to make money from price movements. But it takes a lot of capital to repeat money. If you buy a game to think in our example, you pay commission to the broker and the broker's commission American Committee on Agent and currency - if it means that three unrelated people or one person to integrate "costs.