Home-currency and foreign-currency pricing

Which currency an investment is quoted in

In detail

A home-currency product is bought and sold as it is, with the exchange rate handled inside it. A foreign-currency one has to be converted going in and coming out. The same underlying asset can show quite different movement depending on which you hold.

Example

Up 5% in dollars is about a 5% loss at home if the home currency gains 10%.

Related terms

Currency gain and loss Currency hedging Foreign currency deposit

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For learning, not investment advice. Decisions are your own.