EUR/USD hedge at Interactive Brokers

[blink18]

Hello,

I don't have much experience with forex, so I'm asking you guys. I would like to convert some EUR to USD and then transfer that money to a fund company in USA. At the same time I would like to go long EUR/USD for the same amount and start hedging against those converted USD. Is this possible to do at IB or I should do it on two separate brokerage fx accounts - one long EUR/USD, and the other short EUR/USD (conversion)?

 

[Rhody Trader]

You could do your hedge with a broker, but you're almost certainly going to have to do the conversion and transfer via a bank.

 

[blink18]

You could do your hedge with a broker, but you're almost certainly going to have to do the conversion and transfer via a bank.

Hello Rhody, well I forgot to said that I would like to do the conversion on IB fx account and then go long EURUSD. This is basically:
1. short EURUSD position (conversion of EUR to USD) and then wire USD out to my bank account
2. long EURUSD position (hedging purpose)

Don't know if this is possible to do at the same time with one broker account?

 

[Rhody Trader]

You can certainly do the EUR/USD long position in the broker account. I'm thinking, though, that converting your EUR to USD and sending them to a 3rd party is a no go. Certainly feel free to check with IB, but I think that's something that probably runs afoul of money laundering restrictions (assuming IB would even be willing to do it in the first place). You'll probably have to use a bank for the convert and transfer, and depending on the size of the transaction and the bank in question you could potentially do the hedge there too.