GBP/USD exchange rate risk

This is a discussion on GBP/USD exchange rate risk within the First Steps forums, part of the Reception category; Hi, If I am based in the UK and am trading US stocks and have a balance in USD with ...

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Old Aug 6, 2008, 5:00pm   #1
Joined Nov 2007
GBP/USD exchange rate risk

Hi,

If I am based in the UK and am trading US stocks and have a balance in USD with a broker or an open position (I have never placed a trade so maybe I am not understanding how the process works), I must run the risk of the GBP/USD exchange rate moving against me, especially if I am holding positions for days/weeks at a time.

How do people get around this? Would I need to hedge? How would I go about that? Any ideas?
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