Canadian traders -- how are you hedging?

D

drukes1234

I wanted to ask all Canadian daytraders how your hedging your profits? Let's hypothetically say 2 years from now the CAD/USD is at $1.50 and you are trading US equities making $100,000 USD... on conversion, you're profits are cut DRAMATICALLY.... how are you hedging?
 
IF you have a long-term [US] investment portfolio then futures contracts shoud do the trick.

Personally I think its a little late for this -- my guess is the CAD should trade sideways to down for the next while -- and if the US goes into recession -- than that hedge will get blasted.
 
That's the problem... it's easy to hedge a long-term USD denominated portfolio but I'm just trying to keep my daytrading profits from being cut if the CAD continues to go upwards. I don't think it's too late to hedge, I'm just looking to hedge any further increase over parity -- I'm not interested in hedges when/if it dips back below $1 USD
 
Unless your trading Institutional size and the CAD/USD is making wild swings -- I wouldn't worry about intraday hedging.

If your still worried -- than bring up a chart of CAD futures and scalp upside momentum.
 
Quote from drukes1234:

I wanted to ask all Canadian daytraders how your hedging your profits? Let's hypothetically say 2 years from now the CAD/USD is at $1.50 and you are trading US equities making $100,000 USD... on conversion, you're profits are cut DRAMATICALLY.... how are you hedging?
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if you are trading retail, go with a broker that has multiple currencies, keep your account in CAD, if you have profits in USD switch them over to CAD, if the dollar goes down, your account has more buyingpower, up your size to match that.
 
CVDS, I've thought of that but some of the stocks I trade are often too illiquid to increae size but I believe that would be the best strategy
 
In regards to 2006's post -- I'm not looking to hedge intraday moves, I'm just trying to keep my income the same. I can't increase size on most of my trades because some of the instruments I trade are illiquid so I don't want to make $1000 USD in a day to convert it back to CAD and land out making $500 on the day if the USD collapses
 
Quote from drukes1234:

In regards to 2006's post -- I'm not looking to hedge intraday moves, I'm just trying to keep my income the same. I can't increase size on most of my trades because some of the instruments I trade are illiquid so I don't want to make $1000 USD in a day to convert it back to CAD and land out making $500 on the day if the USD collapses
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because the USD will really loose half it's value in a matter of hours.......
 
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