How to protect my stock gains overseas?

[buri]

Hi everyone,

Its been 7 months I am investing in stocks. Basically, I am in the Euro Zone and investing in Turkish stocks. My main problem is the exchange rate, EUR/TRY. How can I avoid this?

I have searched the internet a bit and found about ETF and currency futures however reading doesn't ring the bell that much as putting into practice.

Any recommendations, pieces of advice?

tia

burak

 

[buri]

as i read more on internet, i can hedge the exchange rate risk with futures or options.

any help which is better and how to put them into action when i buy a stock overseas?

tia

Hi everyone,

Its been 7 months I am investing in stocks. Basically, I am in the Euro Zone and investing in Turkish stocks. My main problem is the exchange rate, EUR/TRY. How can I avoid this?

I have searched the internet a bit and found about ETF and currency futures however reading doesn't ring the bell that much as putting into practice.

Any recommendations, pieces of advice?

tia

burak

 

[awe]

You would short or long the relevant FX pair, however be aware that futures and options have expiry dates so you would need to be sure you sold or exercised them before expiry and bought new ones if you're still holding your stock investment.

 

[NVP]

hi there ........as you have stated hedge the currency risk .....but this costs a % of what you are trading of course

 

[J_C_Anderson]

If these stocks are optionable, try to sell covered call or buy put.