- This topic is empty.
-
I just want to double check that I’m not cocking this up.
(Probably a similar setup to a few of us here:)
Summary:
– Interactive Brokers Cash Account, with Base currency as $AUD.
– I’ve bought US Stocks for my US NDX MOMO Rotational system
– I want to Mitigate/Hedge against a rising Aussie Dollar (AUD) for the stocks I hold in my US MOMO portfolio(I’ve never traded a futures contract before and I just want to make sure that this is correct etc.)
Select AUD-> Futures
Expand to select another month e.g. MARCH:
Select 1 contract: e.g.
Review of Order:
I’m hedging e.g. 1x Contract which means I’m hedged for approx. $74385 (USD)
Some questions:
– Hedging with Futures is the appropriate way? The steps I’ve shown above are on the right track etc?
– In terms of how far ahead to hedge… i.e. I selected the March contract… approx 3-4 months. Is this a reasonable time frame? What do others do e.g. 2-3 months??? Shorter/Longer time frame?
– The 2 figures in the last image
3738 (Initial Margin)
2990 (Maintenance Margin)These 2 figures equals 6728. Cost of the hedge? What happens to this amount when I sell the 1x Contract e.g. do I retain some/all of this amount 6728. e.g.
In March if AUD is lower/flat/higher:0.70 LOWER (I will lose some/all of the 6728)?
0.74385 FLAT/UNCHANGED (I will retain some/all of the 6728)?
0.80 HIGHER (I will gain some $$ plus the 6728)?– If it is a March contract, I assume that means, the END of March? (Double checking).
Just looking for confirmation before I do anything and BUY the wrong thing etc.
Thanks for the tip Julian.
@Scott…. not sure about how much is required…atm… be nice if it’s just the Initial part.
I need to transfer some more funds to IB to put the Hedge on to cover both 3738 (Initial Margin) and 2990 (Maintenance Margin), just in case both are required etc…. I’ll let you know once I’ve made the transaction if it’s Initial only or Initial + Maintenance (if no-one else responds in the meantime etc).
What are the steps to rollover a futures contract?
Mine don’t need rolling until April, but trying to get my head around it and type up an SOP of some sort.
IB gave the following info;
https://www.interactivebrokers.com/lib/cstools/faq/#/content/36996766Use the SpreadTrader tool to roll a future in TWS:
- Right click on a Future position
- Select SpreadTrader
- When the Spread Trader window opens, select Futures Spreads
- Towards the bottom half of the page, look in the left column and find the month you want to roll to.
To roll a long future position:
- Click on the displayed Ask for the contract you wish to buy, and the Spread Trader will set up an order to buy that contract and sell (to close) your long open future position
- Select your desired order parameters and Transmit once finished.
Where I get stuck is point 2 (in red).
Here are what my windows look like;
Then I click on the contract I want (in theory) and the following window shows up, there is no transmit button.
Have asked IB for help, but curious if some smart cookie on here has it figured out
- You must be logged in to reply to this topic.