GBP/USD exchange rate risk

Nov 13, 2007
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#1
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?