Which foreign exchange rate applies to me when I buy/sell US listed stocks?

[viciam]

hi all, happy new year to everyone.

i am based in the uk and i bought some stocks on the nyse.

Which foreign exchange rate applies to me when I buy and sell these USD listed stocks? (gbp - usd) or (usd - gbp)?

THank you

 

[prawn_86]

Its the same rate, just expressed differently. If you are actually moving the money between countries then you will get hit on the spread

 

[viciam]

Its the same rate, just expressed differently. If you are actually moving the money between countries then you will get hit on the spread

But I bought a stock at 83.84 USD at exchange rate of 0.63 and now the exchange rate is 0.60 and the price of the stock is at 89.30 USD. So this has affected the value of my gain which is less than it could be had the exchange rate stayed at 0.63 or had it gone up to for example > 0.70

So I'm trying to work out how exchange rates affect stock purchases and their value in my portfolio

Thank you

 

[prawn_86]

But I bought a stock at 83.84 USD at exchange rate of 0.63 and now the exchange rate is 0.60 and the price of the stock is at 89.30 USD. So this has affected the value of my gain which is less than it could be had the exchange rate stayed at 0.63 or had it gone up to for example > 0.70

So I'm trying to work out how exchange rates affect stock purchases and their value in my portfolio

Thank you

If it is for valuation purposes then just mark-to-market the stock which is pretty much what you have already done. The value is the price multiplied (or divided depending on the quote) by the current exchange rate.

But that is one of the pitfalls of buying overseas stocks, as you know have 2 sets of ricks (stock and currency).

 

[viciam]

Thank you