Hi everyone!
I’m investigating how I could hedge the EUR.USD exchange risk using the FXE etf.
Example:
I’m european and I live in a EUR based country.
I open a trading account funded with 25000 EUR.
I want to trade US stocks, so I convert, let’ say, 20000 EUR to 23306 USD. Rate 1EUR = 1.17 USD
I want to keep some long US Stocks positions for some years.
After some years I will convert back the USD to EUR, at 1EUR = ?.?? USD
How can I use the FXE to lock in the EUR.USD exchange rate so…