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Does the currency of an asset depends on the exchange?

For example, if I have an asset traded on US-Exchange, then the asset is traded in dollar and can never be traded in euro. Or? So I cannot setup the broker to trade this asset with EUR instead of Dollar, or?

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No, you can only trade in the currency of the exchange the security is listed on. If it is listed on a US exchange, then it is priced and traded in US dollars.

If it is a European company, for example, a German company, it would have listed stock trading on European stock exchanges and would be priced, and traded in Euros.

The company might also list shares in the US, which are called ADRs (American Depository Receipts). Those shares are priced and traded in US dollars. The price of the ADR is linked to the price of the Euro-denominated shares traded on the German stock exchange. ADRs are an example of a depository receipt. Be aware that not every non-US company chooses to offer an ADR! If they do, you can find them on the NYSE or possibly the NASDAQ.

There is another special case: cross-listed shares. Here too, the currency of the exchanges is the currency in which the stock is traded.

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    I think you mean "not every non-US company chooses to offer an ADR" – Martin Bonner supports Monica Nov 20 at 17:00
  • So you say: a stock exchange does only provide the currency where it is located and there is no stock exchange which provides more than one different currency for its traded assets. Please correct me, if I am wrong. For example, NASDAQ cannot have an asset traded in EUR. How about other exchanges for other asset classes, for example, cryptocurrency exchanges: Does one exchange can only provide exactly one FIAT money (the same currency for all its traded assets) ? – nimo23 Nov 20 at 17:24
  • @MartinBonnersupportsMonica Thank you! Correcting typo now. – Ellie Kesselman Nov 20 at 22:29
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    @nimo23 This is correct: NASDAQ cannot have an asset traded in EUR. Cryptocurrency is completely different than a US stock exchange. For example, Coinbase has some ability to allow different currencies, but if you do that, you have to pay for foreign exchange conversion, and you can't use it to avoid currency controls if applicable. I don't know if such things as cryptocurrency exchanges exist. You could ask on crypto SE. In the meantime, consider accepting my answer to this question because the other answer is factually incorrect. – Ellie Kesselman Nov 20 at 22:36
  • Another special case: The Toronto Stock Exchange (TSX) here in Canada has some issues trading in USD, not CAD, so there is at least one major exchange that supports more than one currency, albeit not broadly. USD trading is only for some issues. TSX distinguishes these typically with a ".U" suffix (sometimes ".V"). e.g. Caribbean Utilities Ltd, and some Enbridge and Altagas preferred share USD issues. Many ETFs and investment funds have USD classes of shares too. Some specific stocks are quoted in both CAD and USD; e.g, HOT.UN is quoted and trades in CAD while HOT.U in USD. The same stock. – Chris W. Rea Nov 25 at 2:40
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Yes, assets on an exchange are traded in a specific currency. The same asset may be traded in different currencies on different exchanges (such as through ADRs or currency-hedged derivatives), and I suppose the same exchange could trade the same asset in multiple currencies (though I don't know of any), but you can't choose which currency you want your asset to be traded in.

  • Thanks. You say: "and I suppose the same exchange could trade the same asset in multiple currencies (though I don't know of any)". Within the same exchange different currencies? Is this really possible? I have thought that the currency depends on the exchange and not the asset. So if one asset is listed within the exchange it must use the currency of the exchange. An exchange does only provide one currency which must be used for all its assets. Or? – nimo23 Nov 20 at 13:40
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    No - exchanges can trade assets in multiple currencies, though I don't know off the top of my head if any trade the same assets in multiple currencies. In any case, you don't get to arbitrarily choose what currency you trade in. – D Stanley Nov 20 at 14:00
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    @EllieKesselman My answer was not limited to US exchanges - ICE trades different assets in different currencies. – D Stanley Nov 20 at 17:18
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    @DStanley thanks for clarification. To sum up: an exchange can provide assets traded in different currencies. For example: exchange x can have an asset a traded in EUR and an asset b traded in US dollars. – nimo23 Nov 20 at 17:32
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    ICE trades the same assets in the same currency. This question was about stocks. Nimo23 is now asking a different question. Yes, exchange x can have an asset a traded in EUR and an asset b traded in US dollars. It can't have asset a traded in Euro AND in US$ – Ellie Kesselman Nov 20 at 22:40

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