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Interactive brokers currency balance

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Administrator: Retired Backtester
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Interactive brokers currency balance

Okay, I'm asking the question to also clarify it in my own brain.
After a call to IB support things are less clear than before.

So we have a guy which has an IB account in EUROS.

This wants to buy USD stocks, and want to avoid currency loss, example:
Day 1: EUR/USD=1.13, stock value: $10, buy 1000 shares, value in EUROS: $10000/1.13 = 8849.55
Day 180: EUR/USD=1.30, stock value: $10, sell 1000 shares, value in EUROS: $10000/1.30 = 7692.31
Loss because of EUR/USD: -1157.24

By default IB create a loan in the "other" currency, USD here, fine, but it this covering the currency risk?
I presume not, but would like to clarify with people here who are dealing with the same kind of currency hedging.

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