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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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  • $\begingroup$ PLNUSD futures don't have 0 open interest cmegroup.com/trading/fx/emerging-market/… $\endgroup$ – Lliane Mar 12 '19 at 9:03
  • $\begingroup$ When you say "you can't have PLN account on IB" do you mean that you can't select PLN as your accounts base currency? I am able to select PLN as base currency. I can also trade PLN vs USD or any other currency I choose. You may want to call IB and better understand how to configure your account. $\endgroup$ – amdopt Mar 12 '19 at 13:59
  • $\begingroup$ Ok ok I see that you can indeed have PLN as a base currency, thank you very much for that information. Can I, however, dare to also ask, where can I find the interest rate that is charged for the other currency loan? Is that the interest rate mentioned here? interactivebrokers.co.uk/en/index.php?f=39726&p=schedule thank you very much $\endgroup$ – Matěj Langr Mar 14 '19 at 10:20
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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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