After setting up my portfolio I wanted to hedge part of my foreign currencies. What possibilities are there on this excellent platform to hedge foreign currencies?
Example: I have EUR 200’000 in my portfolio, but my reference currency is CHF. How can I hedge, let’s say EUR 100’000?
In theory there are many ways, like with forward FX transactions, but this doesn’t work.
With options, but then I need to know where to get them and how to get daily price updates?
You’re asking the wrong question. PP is a tool for managing your portfolio - not a trading platform. PP is therefore not suitable for mapping the strategies whose results you then map in PP.
By the way: You should not base your investment strategy on the possibilities of PP, but on the chances of success. You then display the results in PP.
You do this by creating a virtual portfolio in PP. In it, you summarize, analyze and structure your investments.
You summarize the results of activities that cannot be subsumed under buy and hold in key figures, which you then display in PP at regular, meaningful intervals (e.g. monthly, quarterly).
Best regards, Laura
Thank you for your reply. I’m not basing my investments on PP, but want to replicate my investments in PP. I thought that it was possible to input an FX forward or was looking if there is a possibility to buy FX options that are linked somewhere.
No, as far as I know, this is not possible.
If you have your hedge in form of a security you can include this in PP. But as far as I know it is not easy to set up options in PP because this is not a type of security PP was originally designed for.
Using the search function you should be able to find a couple of threads discussing this topic, but they may be only in German.