Any UK E-mini S&P500 traders?

[HaloTrader]

How do you avoid currency risk in trading the E-mini S&P500, surely by owning US dollars you are essentially doing a trade on the GBPUSD ... How do you avoid losing money this way? Or is it not a big issue?

Thanks x

 

[Trader333]

Not an issue for me.


Paul

 

[timsk]

Paul,
Your posts tend to be short and to the point, where as mine tend to be long winded and full of fluff. However, your reply here lacks the usual insight, depth of understanding, poignancy and helpfulness that I normally take for granted from you!

Tim.

 

[HaloTrader]

Not an issue for me.


Paul

Surely though if you have a $100,000 account ... You own the equivalent of a 1 lot trade on the forex... So if it moves against you on any given day 200 points, thats a $2,000 loss... And if your aim is $1,000 a day - Its a considerable factor...

Am i missing something?

 

[*ds-ds*]

Halotrader>>>>>one manner in which to avoid currency risk while trading ES emini (S&P500 futures) is simply not to trade the underlying future, but to trade a derivative which is priced based upon the underlying future's movement but denominated in GBP. In the UK a good example of this is spreadbetting upon the direction of price movement of an off exchange derivative which exactly tracks the ES future's price....such a "derivative" is normally termed "rolling futures contract" by spreadbetting providers.(Spreadbetting also allows substantial tax advantages).

 

[*ds-ds*]

Another thought....if one is wary of spreadbetting providers (which many people seem to be on these boards) ..... it may also we worth looking at "futures betting" which I believe allows you to also speculate on the direction of US futures price movement whilst holding an account denominated in GBP. Hope that helps