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Hi, I had a question regarding purchasing S&P500 stock index lots, using leverage and a monthly deposit, with returns compounding on the initial deposit & monthly deposit on the S&P500 monthly return. The returns are listed monthly with this experiment. I have a excel spreadsheet I built that...

Hi Sigma-D Thanks you for your reply & help. Yes, the reason why I gave a different practical example is to help myself and others who maybe reading this, understand what to do for different pairs e.g. EURGBP (quoted the opposite way around to say GBPUSD). It can get confusing for some...

Hi Sigma-D Many Thanks for your response, it makes sense and is really helpful! Yes the 2 stocks are just an example, I do not trade conventional stat arb trades, I rather look to see if the stock will outperform the other by way of fundamental predisposition. I have a bit more complex pair...

Hi gc1 Thanks for your reply. This is really helpful. if you are long the stock your are short the currency - are you are short on GBP or on the USD? The way I figured it is this...please correct me if I am wrong below? If I buy £4,000 of Apple Stock and I short £3,000 of Microsoft Stock...

Hi gc1 Thanks for your reply. Yes it makes sense now. I am doing a spread trade. But lets assume: 1) what if I bought $4000 dollars worth of Apple And sold/sell short $3000 dollars worth of Microsoft. Likewise 2) what if I bought $3000 dollars worth of Apple And sold/sell short $4000...

Hi I have a question I needed help on. Regarding hedging out currency risk on an investment on both long and short sides, but needed a practical answer. All answers will be welcome and helpful! thanks in advance. Lets assume we are trading CFD products on margin in the UK. My account currency...