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But what's the point? Is it only due to the exchange rate anyway?
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@MoKi28 more return and I can decide if and when I exchange the $ back into €:. This means I have no currency risk. I am currently exchanging € for $ and get a relatively large amount of $ to trade. I use this to buy shares in the USA. Once my profit target is reached, I can sell them and the money ends up in USD in my USD account. However, this only works if the trading costs in the USA are not too high. I pay €5.90, which I think is reasonable.
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@Multibagger The yield remains the same, you just have to adjust the exchange rate. This makes absolutely no difference in the end. You can also simply switch the view to USD, then you also have "more return" 😃
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@Multibagger You may have "more" money to trade, but the shares cost more in USD than in euros, so it doesn't help you at all, except probably a few additional costs.
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•@MoKi28 I don't think you understand. What you describe is perhaps true for someone who buys and holds. But if you trade a lot like I do, it's noticeable.
To make it simpler. You buy a share at parity 1:1 at 100 € or I for 100$. 6 months later, the share is at 110$, the exchange rate is 1.10 and you sell. You get €100 credited again, I get $110. What use is the conversion to USD display to you now? There is only 100€ in your account that you can reinvest. So it's a zero-sum game.
To make it simpler. You buy a share at parity 1:1 at 100 € or I for 100$. 6 months later, the share is at 110$, the exchange rate is 1.10 and you sell. You get €100 credited again, I get $110. What use is the conversion to USD display to you now? There is only 100€ in your account that you can reinvest. So it's a zero-sum game.
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@Multibagger aren't you indirectly betting on a devaluation of the euro against the dollar? Because otherwise the 110 USD won't do you any good if you end up withdrawing the money in euros at some point...
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•@wealth_maximizer_ebllj That's right, but I can decide when to do it. As I currently assume that the € will continue to appreciate, I only exchange as much as I need to trade. As this can be done within minutes at Flatex, it's not a problem. I am not currently planning to exchange the $ back in this custody account, as it is a separate custody account only for US shares with a USD account.
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@Multibagger But couldn't you just transfer money from an account in euros to an account in USD? Why the detour via shares?
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@Multibagger Your currency risk does not disappear, it just shifts into the future. The only thing you gain is some flexibility. More return is a fallacy, at best only if the costs are lower.
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@Multibagger Brave to bet against the dollar at the dollar levels🤷
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•@TradingMelone What is courageous about that? It's my assessment. I have already explained this in the last few days. There will be a yield curve control in the US next year at the latest, at the latest when the new Fed chief is in place. Government debt will rise to 120-130% of GDP in the next few years. I see 1.25-.130 rather than 1.10 in the exchange rate.
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