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Currency Risk on foreign shares


Guest Commodityplays

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Guest Commodityplays
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Hi,

 

If you are shorting a foreign share in the US or Canada, please can someone let me know how I account for currency risk? Let's use a rough example of a share valued at 10,000, shorting for £1 a point. Say GBP/CAD is 1.33 now & it goes to 1.5 or 1.2 for example. If the contract is March 2020, there is obviously some pretty large currency risk involved. IG allows one to purchase in GBP or the foreign currency, so does that help? If not, what is the most simple way to totally remove the currncy fluctuations in this period. Thanks for any help on this 🙂

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