Yeah the futures are probably less costly than financing it through IB. I would say what you lose is the divisibility that you get when you trade...
No problemo. The loan case is really IB specific, so take a look at some of their materials on their site, look for "mechanics of an overseas...
No the IB loan is equivalent to being short GBP/USD, sorry i meant to mention this in the previous post as well. But you still have the problem...
Yes that's correct. For such a substantial move there will be overkill from the fact that your hedge will become increasingly too big. For...
The adjustment there refers to the way that, say if your stock pays a dividend (in gbp) then you will have to adjust the hedge to include that as...
No there is no difference, selling GBP/USD IS an adequate hedge irrespective of the fact that you are holding the stock (you might have to adjust...
Well they'll have offsetting balances from other customers with different base currencies, not to mention all the customers that trade through...
I can only talk from my own experiences and i spent a while getting an IB representative to confirm it, but it might still be wrong. Also it...
You've asked for 2 things in this thread: You mainly talk about wanting a foreign bolt-hole to serve as a backup facility if it no longer...
Yes buying the collar on fx futures options would be one reasonable hedge for a natural long GBP position (so why did you ask?). But to get a...
Beautiful. Everyone everywhere is sub-human to someone else.
Cheers for everyone's help, that's thrown a lot more light on the matter. Does anyone know if Cottle's book is still available? I can only see...
A newbie question on the practical aspects of how one actually carries out options arbitrage from a flat book position, and without venturing into...
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