IB: USD base currency want to trade DAX/HSI

Discussion in 'Retail Brokers' started by trader07, Jul 26, 2007.

  1. I am an Interactive Brokers client USD base currency. I want to trade the DAX futures which is EUR and also the HSI which is HKD. Can I just go ahead and trade these and the currencies will be converted or do I have to convert? Anybody who has done this please reply, much appreciated. Thanks.
  2. I'm not a current IB customer, but I know the answer (if you look around their website for a few minutes you'll find it). If you have a margin account, you can just place your trades without converting the currency first. If you have a cash account (or IRA "margin" account) you have to convert enough $$$ to cover the margin requirement to the local currency before making the trade.
  3. rayl


    You can trade contracts in any currency if you have margin feature, but if you end up with a negative balance in that currency, you will incur interest charges. So you need to manage your cash balances across currencies by buying/selling currencies as needed. You probably want to smooth out the FX vs. proceeding in lockstep to reduce transactions costs on the FX.
  4. I just made a trade and made a profit of $240 HKD on the HSI futures. I looked at my Account and it says I have $240 HKD realized.

    So, I clicked on close all non-base currency position and ended up with 30 USD.HKD positions on my account (?!). How do I convert this back to USD cash to realize my profit in USD?

    Do I sell the 30 USD.HKD I got?