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unbannednow t1_j5yhib5 wrote

Reply to comment by Lmaoooooooooooo0o in At least Google Shares Are Rising! by franczesko13

If you own US stocks you're indirectly shorting the Euro so your position goes down when the Euro goes up

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Lmaoooooooooooo0o t1_j5ym94s wrote

That's interesting to know lol. I can feel the 10% difference since 1€ is now $1.10 again.

Is there a name for this phenomenon?

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unbannednow t1_j5yqmda wrote

It’s just called currency risk or foreign exchange risk. Some hedge funds and corporations try to hedge against it using futures. It can be in your favour sometimes though like last year when the Euro was falling

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