I have currently invested in a couple of US stocks using GBP.
However, whenever the market closes the value of my US stock investments gradually keep going down. For example, I lost almost £100 on one of my investments during the weekend when the market is closed.
Can anyone please explain to me why is this happening? Is this normal?
Thanks. Much appreciated.
The pound / dollar exchange is always fluctuating so it’ll always change.
Currently one dollar is worth ~0.79 pound.
In June you got a couple more pence for the dollar.
If the dollar/pound strengthens then you’ll get more when you take your profit.
So I assume you have a decent amount invested.
Either that if you are using CFD account rather than the Invest/ISA then holding will incur overnight fees.
Basically what @phildawson said, generally Dollar has been in down trend since peak around March.
What it means is when you buy US stock, GBP is converted to USD, however as USD is currently loosing value compared to other currency, you end up with less profit or in negative due to FX part of equation.