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Hedging US shares with Interactive Brokers

Discussion in 'International Markets' started by lmz4005, Jun 29, 2017.

  1. lmz4005

    lmz4005

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    Hi Guys,

    I am in the process of trialling a momentum share trading system on the S&P500.

    Base currency is AUD.

    When I buy US shares, IB converts in USD with margin loan (I think).

    How can I hedge the currency risk if I think the AUD is going up?

    - IB does not allow Australians to use AUD.USD CFDs (would have been preferred choice)
    - DX Futures is too much of position sizing
    - ETF such as Betashares USD: but there is a 0.45%pa fee + brokerage?
    - or Can I sell USD.AUD with a FX trade?

    A bit confused at what is the best (meaning most economical) way of doing this hedging...

    Any help would be greatly appreciated
    Laurent
     
  2. lanzoluz

    lanzoluz

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    INTERACTIVE BROKERS (TWS)

    I have an IB account and subscribed to the ASX market data, but can't seem to get the pre-market data which is very important to me. any help pls?
     
  3. lmz4005

    lmz4005

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    I am unsure how relevant your comment is to the original post.
    However, I have found IB customer service quite good in the past via ticket or phone:
    Australia +61 (2) 8093 7300 Direct dial 10:00 - 19:00 (Mon - Fri) (Australia/Brisbane)
    Good luck
     
  4. willy1111

    willy1111

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    I lookrd into some time ago.

    Maybe do some research on mini futures contracts m6a, allows $10k parcels per contract. The traditional/normal futures is $100k.

    So if US exposure is $230k, one might do 2 normal futures and 3 mini ones.

    They expire every 3 months so it would have to be reviewed/rolled regularly.
     
  5. lmz4005

    lmz4005

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    You are legend!
    I did not know I could use a mini futures contract....
    I will check this out
    Thanks
     
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