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Quick question; If I buy stocks from a market that has a much

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Quick question; If I buy stocks from a market that has a much weaker currency, about 1:10 to mine, does it affect my profit a lot?

If the stocks on that foreign market double but the currency ratio stays the same, does that mean I pretty much made jackshit with those stocks?
>>
theoretically you still double your money. making 200 out of 100 Zimbabwean Dollars is still double the amount in USD ceteris paribus.

in practice it depens on the margins of the exchange rates. and of course the exchange rates rarely stay the same. investing in foreign stock is basically a double speculation. you add the exchange risk on top of your regular risks. exchange rates can kill your profits or further your losses you made on the stock market. but they can of course also offset your losses or increase your profits. it's really just another layer of uncertainty.
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>>1561153
The exchange for euro to sek is almost 1:10.

If the stocks go up 10 sek cents it still translate to 10 euro cents per stock?
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>>1561156
Nevermind, i got it.

Are there some interesting foreign markets to invest with hoping that their currency will weaken?
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>>1561156
it'd go up 1 euro cent since you have to convert the 10 sek cent back to euro 10:1.

>>1561162
i think you're still confused. you want the foreign currency to strengthen after you've invested (or your own currency to weaken).

to stick with your example of eur:sek = 1:10
right now you need to pay 10 sek to get 1 eur. if sek weakens you need to pay 12 sek to get 1 eur, ergo your investment would instantly lose 16.6% on euro basis. if sek strenghened you'd only need 8 sek to get 1 eur and your investment would instantly go up by 25%. keep in mind that we're again neglecting conversion fees and margins for simplicity's sake.

investing in stocks in foreign currencies is a bit dodgy. you have to keep the picture from the point of view of an investor in mind: if a paper is at 100 sek at 10:1 and then the sek goes to 8:1 an investor would have to pay 25% more euros for the same paper. so from the pov of the eurozone the paper is suddenly grossly over-valued and would not be bought or sold off even. so the markets have a self-correcting mechanism. if the currency strengthens there is a tendency for markets to go down since less foreign capital comes in. any gaps allowing arbitrage are closed increasingly fast in the era of algorithm trading.

like with any investment - only do stuff you *understand*. don't go blindly into something you don't fully comprehend.
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What are some good brokers? Is eToro good?
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>>1561096
1% is 1%.
I am an American, so my currency is USD. JPY is worth about 1/100 USD.
However, if I buy ¥500,000 worth of Nintendo stock and it goes up to ¥1,000,000, I've still doubled my money. The exchange rate doesn't even matter until I cash out.

If that doesn't make sense you need to learn high school math before you even consider investing.
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