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Each libor contract is 500,000 gbp. Can I hedge it by going short 8 gbp/usd futures per libor to hedge out currency risk considering each gbp/usd futures is 62,500 British pounds?

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Why would you need to hedge the full notional? Your currency exposure is via the margin (if you post in GBP) and the PNL, neither of which are anywhere near as much as the notional.

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  • $\begingroup$ Thank you for the answer; I would assume that the same would be for any foreign equity/fixed income trade? $\endgroup$
    – JamieC113
    Sep 20, 2021 at 15:40
  • $\begingroup$ Depends on whether it's funded or unfunded. $\endgroup$
    – user42108
    Sep 20, 2021 at 16:30
  • $\begingroup$ You're right. futures aren't funded unless you hit the maintenance margin requirement and you have to post it. $\endgroup$
    – JamieC113
    Sep 20, 2021 at 16:34

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