Setting up a foreign stock investment

[flight]

thank you. And finally, do you have any tutorial or instructions for recording an FX transaction between the base currency and native foreign currency?

[Mark]

Hi flight,

We have a tutorial on using multiple currencies, but it doesn't explicitly show selling one currency to buy another. This is just a sell of one currency, and a buy of another. The cash in each currency is bought/sold at a price of 1 in that currency, and the number of shares would be the value in that currency.

For example, if you sold 130 CAD and bought 100 USD you would record 2 transactions:

CAD Cash Investment: Sell 130 shares at a price of 1 CAD
USD Cash Investment: Buy 100 shares at a price of 1 USD

[flight]

Mark,

How does FM handle exchange rate conventions? Meaning let's say I have a EUR denominated security, and the exchange rate is 1.194172 (on 12/29/17).

In native currency, there are 10,000 shares @ 0.771 EUR, for a value of 7,710 EUR.

However, when I hit View->Exchange Rate Adjusted, I see $6,456.36

This is incorrect. A EUR is worth more than 1 U.S. Dollar. FM is taking 7,710 / 1.194172. The correct adjustment is 7,710 x 1.194172 = $9,207.

I need to check all of my currencies now.

[Mark]

Hi flight,

If USD is your default currency, then each exchange rate investment you're using should be how many of that non-default currency are equal to 1 USD. So, in your example, you need to invert that number. 0.8374 EUR = 1 USD. Your EUR -> USD exchange rate should have prices near this 0.8374 number. 1/1.194172 = 0.8374.

If you forget which way it goes, look at the "Options / Currency Settings..." dialog. Is is asking how many of each non-default are "= 1 Default".

[flight]

Thanks Mark,

How do I invert the exchange rate? I think i just followed the tutorial.

[flight]

OK, I think reversing the yahoo symbol should do it.

[Djobydjoba]

Hi Flight,

If USD is your default currency, then each exchange rate investment you're using should be how many of that non-default currency are equal to 1 USD. [...] EUR -> USD exchange rate

Perhaps what leads to confusion is the EUR -> USD notation used by Mark.

EUR -> USD must be understood as the exchange rate USD/EUR

The Yahoo symbol for USD/EUR is: USDEUR=X

[flight]

Thank you. And I just had one follow up.

How do you record GBP transactions. The yahoo price brings in the pence amount, which FM interprets as British Pounds.

For instance, lets say the price is 1,700 pence from Yahoo. FM treats this as 1,700 pounds.

Do I just adjust my shares accordingly, say instead of 300 shares, it would be 3 shares x 1,700 pounds?

thanks

[Djobydjoba]

On pence / pounds, I think the answer is here (in the "Yahoo - UK & Ireland" section): https://www.fundmanagersoftware.com/intrtv.html#YahooUK