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Interactive brokers currency balance

  #8 (permalink)

Luxembourg, Luxembourg
 
Trading Experience: Advanced
Platform: TWS
Broker/Data: Interactive Brokers
Favorite Futures: Stocks
 
Posts: 491 since May 2012
Thanks: 1,641 given, 1,148 received


sam028 View Post
Thanks @redratsal, the video was helpful.

But from what I understand the collat. loan basically remove the currency risk, for a cost of 1.61%/year for USD (which seems fine to me). So if you don't want to manage your account like a pro and like @Fadi , and assuming you have an account in Euros and no other loan in USD, just buy the USD instrument you want and that's it!

Yes, that is how it works, but you are only covered for the initial purchase price. Should the value of your security increase / decrease, then your hedge will no longer be as effective. You can however do spot trades on the USD to rebalance your loan periodically.

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