Currency hedging
I live in the US but due to necessity, I started holding a significant amount of money (bankroll) in GBP. Unfortunately, assuming that the pound and dollar are valued fairly, this gives me some unwanted volatility since my lifestyle is linked only to USD (or so I think).
I just realized that I've lost ~$1500 in May due to a rising dollar valuation. What should I do if I want to remove this volatility? I am a noob on the subject but I imagine I should be able to buy an option on pound that would cancel the variation in exchange rate. Would this be worthwile? What kind of transaction costs and time would be involved?
Or maybe I should be happy that I am naturally hedged against a falling dollar?
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