Benefitting from shares in euros

Pringle67

I work for an Italian owned company and will shortly be receiving approx euro56,000 in shares. They will sell these for me and put the money in sterling into my Uk current account where my salary is paid. With the euro so weak against the pound at the moment i wondered if it would be better to hold the money in euros in a euro bank account until the conversion rate improved. Would this be the best thing to do or is there a better alternative? I want to use the money towards a deposit on a house hopefully this year.

masonic

Who is to say it won't get worse in the short term. Euro QE has only just started.

ermine

Pringle67 wrote: »

I work for an Italian owned company and will shortly be receiving approx euro56,000 in shares. They will sell these for me and put the money in sterling into my Uk current account where my salary is paid.

I really shouldn't do this because it is fraught with danger if you don't understand but you can hedge the difference the difference of the Euro falling between now and when you get hold of it using something like IG Index and forex. But it's not an easy job to get your head round. I'd do it for a sum equivalent £40k but you must understand what you are doing to hedge the right amount.

I'm with masonic. Mario Draghi has got his big bazooka out and you're in the firing line. Resistance is futile.

If anything you might be better off with the shares, but if you need the cash in a year then hedge between now and you getting the cash. Unless it's only a couple of weeks, in which case take it on the chin.