FX cash trade frequency

[Spacious08]

Hi everyone,

When trading futures contracts across multiple markets around the world, it results in my portfolio holding various cash balances in different currencies based. When certain currencies move into negative territory (due to trading losses), I end up paying interest on what’s essentially a loan in that currency.

I’m curious to know how frequently others are monitoring their cash FX balances and executing FX trades to convert these balances back into their base currency? Do you manage these FX balances daily, weekly, or on another schedule? Also, what factors influence your decision on when to execute FX balance trades, such as interest rates or currency volatility?

Looking forward to hearing how others approach this!

[craigmediaservices]

Would love to hear this as well, as I wasn't sure how to handle it either.

I'm also only using about 10% of capital as maintenance margin. I think Mr. Carver has posted about holding a cash-like ETF previously for much of this which seems like a good idea. Do you have an approach?

[vishalg]

Rob covers this in his latest book. Personally, I would convert any negative balances to base and leave positive balances in the account. Any fx translation effects will be small relative to the capital but interactive brokers charge a 2% spread on credit-debit cash balances..

[Spacious08]

Ohhh thx for the reminder. Page 555 in AFTS