Converting currency using IB's Forex platform

[SteelSpark]

Hi,
I have a question about converting currency using Interactive Broker's Forex platform.

Basically, all I want to do is convert USD to GBP, and then be able to withdraw that GBP. I have tried on the demo system, by doing the following.

* Bought 100,000 GBP via GBP.USD (IDEAL)
* Then I have 100,000 GBP in my account, plus an open FX position of 100,000 GBP.USD contracts
* Closed the position
* Then I no longer have the GBP and they have been converted to USD

However, I only want to do a one-way conversion of USD to GBP. Is there a way to do this?

What does the open position mean? Do I have to eventually close it, or could I just move the GBP out of the account?

Sorry, for such a newbie question!

Thanks.

 

[Trader333]

If you have traded and made a profit that is in USD and wish to convert it back to GBP then you use the rebalance feature to do so.


Paul

 

[SteelSpark]

If you have traded and made a profit that is in USD and wish to convert it back to GBP then you use the rebalance feature to do so.
Paul

Thanks. However I think that my situation is slightly different, I have funded the account in USD and I just want to be able to convert them to GBP.

So, I start with no open positions and without having converted any cash, or made any profit in another currency.

Thanks again.

 

[gc1]

What does the open position mean? Do I have to eventually close it, or could I just move the GBP out of the account?

For information only, no, yes.


To get rid of the "unwanted position" after doing a currency conversion:

Click on the "Account" icon in TWS.

At the bottom, "Portfolio" section right click on the position and select "Adjust position or average price".

Change the position size to 0 and click "OK".


http://www.trade2win.com/boards/brokerages/18316-interactive-brokers-126.html#post435846

 

[SteelSpark]

For information only, no, yes.


To get rid of the "unwanted position" after doing a currency conversion:

Click on the "Account" icon in TWS.

At the bottom, "Portfolio" section right click on the position and select "Adjust position or average price".

Change the position size to 0 and click "OK".


http://www.trade2win.com/boards/brokerages/18316-interactive-brokers-126.html#post435846

Thanks. I tried this with after purchasing the GBP on GBP.USD (IDEAL), but I get the following error:

"Average cost orders not supported for this combination of exchange and security type"

Is there something else that I need to do? If it is for information only I guess that I could just leave it there but it is a pain.

Thanks again.

 

[SteelSpark]

Thanks. I tried this with after purchasing the GBP on GBP.USD (IDEAL), but I get the following error:

"Average cost orders not supported for this combination of exchange and security type"

Is there something else that I need to do? If it is for information only I guess that I could just leave it there but it is a pain.

Thanks again.

Actually, I think that the problem might be that it seems to be routing the order via IDEALPRO rather than IDEAL and I can't find a way to force it to use IDEAL (when previewing the order IDEAL is definitely selected, but then when it is filled the position row says IDEALPRO).

 

[gc1]

If you're using the "FXTrader" window your quote panel should show either GBP.USD or GBP.USD(IDEAL)

If you click buy or sell on one I don't think it should ever send the order to the other. The minimum trade size on IDEALPRO is roughly USD 25,000 (in the case of GBP.USD looks like it rounds that up to £17,000) so any smaller order on IDEALPRO will be rejected.

It's possible that "adjust position" option might only work for IDEALPRO trades. I've never used IDEAl so I don't know for sure.

 

[SteelSpark]

If you're using the "FXTrader" window your quote panel should show either GBP.USD or GBP.USD(IDEAL)

If you click buy or sell on one I don't think it should ever send the order to the other. The minimum trade size on IDEALPRO is roughly USD 25,000 (in the case of GBP.USD looks like it rounds that up to £17,000) so any smaller order on IDEALPRO will be rejected.

It's possible that "adjust position" option might only work for IDEALPRO trades. I've never used IDEAl so I don't know for sure.

OK, I finally figured it out. For some reason in the demo system any trade is routed via IDEALPRO (even if it is below the minimum, even just buying £1). Perhaps because they want to focus the demo on the Forex trading.

Once I tried it in my live account, it worked fine.

Thanks very much for your help.