2

So I would like to buy a certain stock that is not available in my currency and also an index fund. I see there is the option to buy it with CFD but I cannot find it in the documentation or through search if it is possible to buy this without leverage reason being I want to go long with a long-term horizon on them and I am not sure of how to apply a currency hedge.

  • Not sure I quite understand. You are looking to buy the stock and also buy an index fund? Does the index fund have anything to do with your question? I assume it is available in your desired currency? – PatternMatching Mar 25 '18 at 19:31
  • are indices from other parts of the world available in my desired currency (EUR?). In general my question is about buying something that I cannot buy with my currency as CFD without borrowing money. I put up an answer actually. – arisalexis Mar 26 '18 at 19:48
1

Site support confirmed this is possible with setting margin at 100% so you can buy a CFD without borrowing money and no interest rate fees.

0

Additionally, and given that derivative exposure involves risk factors not necessarily associated with underlying exposure, I think that this tutorial on how to hedge away the currency risk associated with the purchase of stock in something other than your base currency may be helpful:

https://ibkr.info/video/1172

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.