# Playing around with currency exchange rates

**URL:** https://forum.mustachianpost.com/t/playing-around-with-currency-exchange-rates/12887
**Category:** Investing / Portfolios
**Created:** [May 29, 2024, 7:45pm UTC](https://forum.mustachianpost.com/t/playing-around-with-currency-exchange-rates/12887 "2024-05-29T19:45:40Z")
**Posts on this page:** 1
**Showing post:** 5

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### Author: ![Helix](https://forum.mustachianpost.com/letter_avatar_proxy/v4/letter/h/e19adc/32.png) [@Helix](https://forum.mustachianpost.com/u/Helix)
#### Post date: [May 30, 2024, 11:07am UTC](https://forum.mustachianpost.com/t/playing-around-with-currency-exchange-rates/12887/5 "2024-05-30T11:07:02Z")

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> [@purplebike](#):
>
> The currency it is bought with means nothing

Yes, see the wiki entry:

> [@The trading denomination is irrelevant for all assets (and hedging)](https://forum.mustachianpost.com/t/the-trading-denomination-is-irrelevant-for-all-assets-and-hedging/12162):
>
> tl;dr: There is no important relationship between an asset (e.g. gold) and its denomination (e.g. CHF). Listen to reason Reason 1: The asset you hold If you buy 1 kg of gold, you hold… 1 kg of gold. It logically has the same value regardless of what currency (CHF, EUR, USD, etc.) you bought it with. Reason 2: Arbitrage Let’s say you could get more value by buying or selling your gold in one currency than another. For example: Asset Denomination Price Gold CHF 10 Gold EUR 20 CHF EU…

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