Excerpt from: Understanding Spread Betting
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| February 16, 2007 | | Currencies affect stock performances, usually in the export business | | The stock prices of companies that export are often affected by the direction of a currency. This is because the value of overseas sales are eroded when a country's currency goes up. Spread bets on individual equities should consider how much exporting a company does, as well as look at the currency of that company's country. Then, in turn, look at how much the company influences a stock index. A good example of this is how the strength of the Japanese yen affects Japanese stocks. | | |
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