Hi!
I have a question regarding currency hedging in stock trading/investing. Since I live in Sweden and my account is denoted in SEK. If I take the following trade, what would my currency exposure to the USD be?
Example:
I buy Apple for 10 000$
I short sell Microsoft for 10 000$
Are both these positions going to get me long USD vs SEK? To hedge the currency risk do I need to short sell 20 000$ vs SEK or do one long and one short position in the same currency hedge out the currency risk by itself?
Thanks in advance!
Sincerely
Andreas
I have a question regarding currency hedging in stock trading/investing. Since I live in Sweden and my account is denoted in SEK. If I take the following trade, what would my currency exposure to the USD be?
Example:
I buy Apple for 10 000$
I short sell Microsoft for 10 000$
Are both these positions going to get me long USD vs SEK? To hedge the currency risk do I need to short sell 20 000$ vs SEK or do one long and one short position in the same currency hedge out the currency risk by itself?
Thanks in advance!
Sincerely
Andreas
