Hi Evan and everyone,
Not sure if this was posted here before but is there a way to add FX transactions? So let’s say we track this through Cash Balance, whereby I buy USDSGD and it shows up as a USD cash balance, then I use the USD cash balance to buy USD stocks, then these stocks have the initial USDSGD rate tagged to them for cost. Not sure if I am making sense haha. Would love to discuss this further!
Hi,
That would be a more complicated way to track at least more complicated for StocksCafe.
A easier way, at least for StocksCafe, would be to simply allow the entry of the FX with the buy or sell transactions.
One weakness of this is that it assumes you make the SGD to USD exchange specifically for the transaction. In some cases, I believe people would exchange a lump sum into USD then use the USD in multiple transactions. Or worst, exchange multiple times into USD at different rates and then use that USD in multiple transactions.
Ah… this can get quite complex.
Yes, I have been trying to calculate it myself on my Excel and it really is complicated haha. How about an average USDSGD cost being applied to USD assets? Would that be an easier calculation?
How would StocksCafe know this average? Simply entered by user? Or?
The simplest and straight forward for StocksCafe would be to simply enter the FX rate per transaction.
Yes, that would be a good solution as well.
I was thinking that the user buying USDSGD would key in his FX transactions and then an average FX rate would be calculated and applied to the cost of the foreign-denominated stock. So it’s just 1 average FX rate.