How to hedge PLN account on Interactive Brokers
How to hedge PLN account on Interactive Brokers
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Matěj Langr · External communityPost link
External question — Quantitative Finance Stack Exchange
Author: Matěj Langr
Original post: https://quant.stackexchange.com/questions/44529
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
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I know that you can't have PLN account on IB, the PLN input is exchanged into USD, GBP etc. currency. However I would like to hedge the other currency exposure against PLN, or at least find out how to do it.
Easiest thing would be via FX futures, if I am correct, perhaps through options. I didn't find no FX futures on IB products listing tho, that is why I ask. I found USDPLN FX futures on CME to have 0 open interest thus I assume that there is no liquidity on that pair
So if there is some guy who knows his IB, how would you hedge such position specifically on IB?
Thanks a lot.
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ThatDataGuy · External communityPost link
External answer — Quantitative Finance Stack Exchange
Author: ThatDataGuy
Original post: https://quant.stackexchange.com/a/53487
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
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Err, if its cash, then you can hedge your exposure to USD by selling USD in the spot market for PLN. That's called "sweeping" your PnL back to your base currency. To be efficient, you'll have to do that daily - its sucks, but that's part of the deal when it comes to trading USD denominated securities when you don't use USD to pay your bills.
You won't find much liquidity in FX futures, as the FX market operates almost exclusively OTC. You can find another broker to do straightforward FX cash or forward trades if you want. In fact, I would be surprised if IB don't already offer that directly with them.
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Quoted from Forex.com.bd-Editorial External question — Quantitative Finance Stack Exchange Author: Matěj Langr Source score (net votes, not local likes): 0 Original post: https://quant.stackexchange.com/questions/44529 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. I know that you can't have PLN account on IB, the PLN input is exchanged into USD, GBP etc. currency. However I would like to hedge the other currency exposure against PLN, or at least find out how to do it. Easiest thing would be via FX futures, if I am correct, perhaps through options. I didn't find no FX futures on IB products listing tho, that is why I ask. I found USDPLN FX futures on CME to have 0 open interest thus I assume that there is no liquidity on that pair So if there is some guy who knows his IB, how would you hedge such position specifically on IB? Thanks a lot.
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