So if I buy a stock in a foreign currency, then later sell it for a small profit, I may still make a loss overall if FX has moved against me. Here’s a crazy idea. Why not bring in some of that CFD FX goodness as a currency hedge in Invest mode?
Example: My account is in GBP, and I buy some stock in EUR. There’s a toggle to “Enable FX Hedge.” If I choose to do this, it opens a CFD position short on EUR/GBP. That way if the stock price stays still but the currency moves, I won’t see any difference in my GBP account. Could even use the stock itself as margin!
You can sort of do this manually, but with a minimum trade size of 500 on both GBP/USD and EUR/GBP it’s a bit of a blunt instrument - plus you have to keep switching modes, and moving funds around.
What do people think? Is this a stupid idea, or genius?