in one of your paragraphs its actually stated that if the currency is different than the base u will have the choice between loan and conversion. + the loan rates are not disclosed anywhere as far as i see. how do i do the conversion trough ideal and will it be permanent or have i got to do it for every transaction. thx
Whats your base currency? What are your base assets denominated in? If they are the same, then you shouldn't have any issues. Just be aware if you're holdind other currencies, you have to deal with interest rate differentials, in addition to no positive accrual on your first 10k. that being said, if you're under 10k, you're probably better off simplifying your account and getting to all 1 currency.
i said earlier my acct is funded with euro/pound but the base is in dollars, meaning i trade in $, my statements are in $, etc. i know about the rate diff and no accrual on first 10k. i have different currencies because once i opened my acct i funded it with pounds then added a substantial amount in euros later. my problem with $ is the costant decline in the currency and the terrible outlook due to feds mechanics. will have to think about it.
You just open the pair (USD/EUR or EUR/USD) in cash that you want and you buy or sell an amount sufficient to cover your margin needs. In your account your euro will decline and your usd will increase. Its permanent until you convert the money back.
ah.. ok. lets say you buy 100 shares of aapl. that means you are SHORT $8488 USD/gbp, long 100 shares of Aapl. You obviously don't earn gbp or eur interest on that 8488, and you have to pay excess interest (1% annual lets say) for usd/gbp differential. you could just buy $8488 USDGBP on ideal to get your net USD position to neutral, but remember then you'd be assuming a larger short GBP position ($8488 USD worth... like 4352GBP) and you'd have to pay interest on that position, or if it is NOT in excess of your cash GBP position you just don't earn interest on that amount. If you look at your acct, you should be at negative accrual for your USD short currency position, and positive accrual past 10k of whatever is left of GBP or EUR. long equities = short underlying equity currency.
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