Trading my SIPP with Saxobank CFD US Indices

[markthetrader]

Hello,
I hope someone can help me as I have had little joy from Saxobank or my Broker.
I have a UK Sterling Sipp trading account.

Could someone please explain to me in layman's terms, what effect the movement in the gbp/usd has to a short and long position in the DJI 30 CFD?

Let's suppose I short the DJI $10 point at 17600 with an exchange rate of 1.58 dollars to the pound. I close the position at 18000 with an exchange rate of 1.48,
what is my p and l?

Conversely, I go long on the above, what is my p and l?

Your help would be very welcome as I have had appalling help from Saxo and my broker.

Thanks

 

[NVP]

Hello,
I hope someone can help me as I have had little joy from Saxobank or my Broker.
I have a UK Sterling Sipp trading account.

Could someone please explain to me in layman's terms, what effect the movement in the gbp/usd has to a short and long position in the DJI 30 CFD?

Let's suppose I short the DJI $10 point at 17600 with an exchange rate of 1.58 dollars to the pound. I close the position at 18000 with an exchange rate of 1.48,
what is my p and l?

Conversely, I go long on the above, what is my p and l?

Your help would be very welcome as I have had appalling help from Saxo and my broker.

Thanks

hey M

what spreads are they giving you on that........I want to use CFD's in a SIPP wrapper

in answer to your question you need to talk to your broker

however I would say that if you insist the trades and accountare conducted in sterling you will then have no forex exposure on the account as an index is an index and simply yileds a % profit or loss on how it performed.....

if you are introducing Ex rate risk to the equation naturally you will also suffer/win on the % change in currencies as well (and spread/commission costs) ............something I suggest you try to avoid ?

N