# Weird calculation

**URL:** <https://community.trading212.com/t/weird-calculation/3371>\
**Category:** 🤝 Help\
**Created:** [March 26, 2020, 7:05pm UTC](https://community.trading212.com/t/weird-calculation/3371 "2020-03-26T19:05:21Z")\
**Posts on this page:** 1\
**Showing post:** 5

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**Author:** ![David](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/david/32/39_2.png) [@David](https://community.trading212.com/u/David)\
**Post date:** [March 26, 2020, 7:44pm UTC](https://community.trading212.com/t/weird-calculation/3371/5 "2020-03-26T19:44:10Z")

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@Ducdopamin1 This is currency (FX) risk. When using € to purchase denominated stocks, you're exchanging € for .

During the time you hold an investment, in your case - Netflix, should the $ devalue against €, you’re losing money even if the stock’s going nowhere.

Example:

Day 1: You need $300 to buy Netflix. Let’s say that’s €200 at the “Day 1” exchange rate - 1.5.

Day 7: You decide to sell your Netflix stock which is now worth $310. However, let’s imagine the exchange rate is now 1.75.

- $310 / 1.75 = €177.14.
- €177.14 - €200 = -€22.86 even though Netflix has gone up in price. This is because of the $ that you bought to purchase Netflix got depreciated.

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