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The pesky FX component....


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Over the last week I have been cashing out of my portfolio , mostly US stocks, all pretty good (average 20%) rtn but when I look this morning and did the analysis , it took a big dent due to the adverse USDGBP Fx move in the last 3 months . 

IG have this unfair rule (in my view) that they don't waive the $15 commissions unless you elect to have all currencies automatically converted back to GBP, so question is  how to hedge  the FX components, 

Would be fiddly to keep buying an ETF every time I trade USA and SB long term would just use margin up  and overnight charges 

 

 

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On 31/07/2020 at 21:24, dmedin said:

Could you not hedge by spread betting or taking out a CFD on GBP/USD?

 

problem is that CFD's ends up being costly. I think it's the only way  though but if you try hedge having 20 positions all put on and off at different times , it needs a lot of management not to mention the accumulation of overnight charges , as the SB could be on for years if the US share  is still profitable 

Looks like not much options though

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