Advice on US shares (FX rates, brokers, GBP)17 Jan 2018 15:43
Hi all, a little help in understanding how brokers facilitate US stock as i'm a little confused as it's my first US trade. Example:
- Purchased 500 units of NTNX in March 17 for £10300 GBP / $12400 USD at 1.20 Exchange rate. £24.88 per share
- Sold 500 units of NTNX today. Saw a profit of about $4760 so expected about £3400 profit.
- However when the trade closed out I got only about £2000 in profit. Even at today's exchange rate of 1.39 i'd expect to see a lot more.
Is it the fact that I need to apply the exchange rate across the whole value of the trade as I am opening and closing in GBP and not just the value of the profit?
Is it that the entire value of the trade is subject to forex changes, not just the profit profit portion seen in the account? When you close out there looks to be a large adjustment on the whole number because, i'm moving the whole thing back to GBP :/
Did I make a mistake in closing in GBP and should have kept in USD?