Exactly.
Value of investment is hedged and can/will be adjusted every other day.
The portfolio is fixed. Losses and profits depend only on the performance of the portfolio in $.
So, if the portfolio value goes up by 10%, add 10% equivalent to forex account, and vice-versa.
oops, srry didnt see u there on the new page. I "quick posted".
but yea, i figured that out but u approved it. thx
NEW QUESTION
IS there a a currency pair that is very proportional to GBPUSD but even less volatile?
this will enable me to use higher margin.
Yes, I do. Around 5% of the principal. So, in this case around 2.5K.
EDIT - Oh and yes, I do realise that its easier said than done and 5% premium is still costly (i am definitely losing 5% to start with). But thats why I am asking here for alternatives.
I understand what u r saying but though valuable advice, its not related to my question. See, I am not asking for advice about which companies to pick, companies which will suffer from or gain from dollar devaluation. Heck, dollar devaluation though likely may npt happen for the time frame I...
Hi,
I usually trade in US markets but I live in UK.
I want to hedge against the currency risk (when converting from USD to GBP).
What's the best way to hedge here?
I would probably hedge using Forex Options (GBPUSD call options).
Is there a better, cheaper, quicker way?
thx again :thumbsup:
"But declaring yourself a trader by profession (when opening a broker account) might change your datafeed bill - to the upside."
Priceless advice.
"once you register yourself self employed you will have to do self assesment returns for the lest of your UK life. i have a friend that went self...
You got me there.
Agreed.
I think its benecial to register as a self-employed because i could put that on my CV or get a job daytrading later on, say 2-3 years later. Thinking ahead but there's no disadvantage being registered as a self-employed instead of say, unemployed.
thx