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Hedging a spot BTC long position using IG CFD

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Hi,
I want to hedge a spot bitcoin long position using IG CFD, and I want to use the BTC GBP1 product as I dont want to pay the currency conversion fee due to my account being in GBP.

I have the following questions:

Is the BTC GBP1 product suitable for this purpose? Say I want to hedge 1 bitcoin, which is valued at 8000. So I take out a position size of 0.78 in the BTC GBP1 market due to the GBP USD exchange rate being 1.27. So now I am moving at 0.78 pence per dollar Bitcoin moves.

However, with the GBP USD exchange rate constantly fluctuating, will this work? Will changes in the GBP USD exchange rate affect me being in a 1:1 position against BTC USD?

I am really struggling to get my head around this.

Any help is appreciated.

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22 hours ago, Fib550 said:

Hi,
I want to hedge a spot bitcoin long position using IG CFD, and I want to use the BTC GBP1 product as I dont want to pay the currency conversion fee due to my account being in GBP.

I have the following questions:

Is the BTC GBP1 product suitable for this purpose? Say I want to hedge 1 bitcoin, which is valued at 8000. So I take out a position size of 0.78 in the BTC GBP1 market due to the GBP USD exchange rate being 1.27. So now I am moving at 0.78 pence per dollar Bitcoin moves.

However, with the GBP USD exchange rate constantly fluctuating, will this work? Will changes in the GBP USD exchange rate affect me being in a 1:1 position against BTC USD?

I am really struggling to get my head around this.

Any help is appreciated.

Hi, similar answer to your other question regarding 'contracts for difference' and currency conversions. Regarding hedging both BTC and GBP, IG only does BTC/USD  and I don't know of any broker that does BTC/GBP but interestingly the charts look almost identical.

image.thumb.png.59917462aa7a250b3f378a4bec27560f.png

image.thumb.png.08b6eca2cac18211e1b6b73afdc5e09b.png

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Thanks again for the reply. IG do have a BTC GBP product but it's hard to find, when you open the BTC USD product on the CFD or spread bet platform click the spot button then a BTC GBP product appears whereby the price is exactly the same as the BTC USD price.

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2 hours ago, Fib550 said:

Thanks again for the reply. IG do have a BTC GBP product but it's hard to find, when you open the BTC USD product on the CFD or spread bet platform click the spot button then a BTC GBP product appears whereby the price is exactly the same as the BTC USD price.

Hi, it's not btcgbp, IG have just changed the $1 per point to £1 per point on the deal ticket to make it easier using a GBP account, the chart is still btcusd.

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