How do they offer USD instruments in GBP?

[mpat89]

I was just scratching my head thinking about this...
I have positions open on US stocks and currencies... how are they able to offer me a completely GBP based profit/loss, surely if they hedged the currency they'd have to constantly update their position size based on the value of my stocks in USD.. or something... how do they do it?!

 

[ns1000]

You're assuming they go for a perfect 1 for 1 hedge.

Given the average hold time for a spread betting position is around a week, the currency will not move far enough to make an appreciable difference to the size of the hedge. A firm with decent risk control will also incorporate the nominal value of the trade into its FX book and hedge the risk out there.