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Quote in order of speed. Slowest and widest leg first, while keeping your quotes in the faster narrower legs wider. Idea is to make the spread on the slowest widest leg first, as the others are progressively easier and cheaper to do. I know I didn't answer the question, but this is one way...

PFOF & internalization is the name of the game. Retail muppet spread paying market orders still get filled at NBBO. No worse. Wholesale gets price improvement, making that spread. And the the bottom-feeding screen based market makers get no action, love, or volume. Tough times for high...

+1 Required reading for new punters.

"to protect traders from excessive rate fluctuations" Well .. this is me laughing my ass off. Good luck flattening it out Oanda..

+1 But scaling in and out in a linear progression? :D

In some markets, stocks under a buck make up significant index weight.

jcl -- worth checking someone's credentials before you assume too much knowledge asymmetry..

Just saying - if a trader can't show 80k, and DPTG is used to dealing with traders that can't show 80k, then this is a particular kind of "trader" they attract. How much was that computer and internet desk fee?

I build a basket database once to walk a supposedly optimised ETF basket backwards. Lots of moving parts .. and .. turns out it's hard to track an index without all of the index.

->chuckle<-

Got to wonder how successfull their "traders" are.

Sounds like IB is taking on the currency risk for you, the charging you the carry cost on their hedge.

Sounds like someone's tracking their own baskets :p

:D :D :D Same thought crossed my mind. I am also wrong about most things, however :eek:

The fx risk is not covered on the line of credit. You pay the funding because they have lent you the foreign cash, but you're still on the hook for the fx movement on that loaned amount.

"I search for a hedge against substantial changes in the GBP/USD exchange rate." So sell GBP. If you want to be picky, and accommodate the stock movement, then adjust the fx hedge over time. Yes, you could play with options, but all options trades are volatility trades. I didn't think...

Answer to whole thread: Depends on the stability of the correlation.

You will not be short GBP on net. You are long GBP through your stock purchase. You will also be short GBP through the spot fx trade. Net net nothing. Your exposure is therefore to the stock, only, which is one risk, and the risk which you are actively seeking.

or futures

that would be fun to tuck into a stripper’s knickers..