Canadian Traders (What currency?)

I have a issue with you saying you want to completely avoid speculating. That isn't the issue here. You have to have exposure, there is really no ideal exposure. Still though I think it is best to be proactive. I think you should find out what major resistance levels are and buy and sell around them. Do not use any leverage and only fade moves, that is sell into strength and buy into weakness. Over time you will most likely come out ahead.

I am assuming that you are using interactivebrokers. If you are using a Canadian bank online brokerage this will not work because of commissions, and then you have bigger problems to worry about.
 
There really is only 2 choices unless your account is large to the size where you can negotiate swaps or forwards with a bank. And even so, you have to work the details of that out.

Anyways 1) Use CAD currency futures at the CME

2) Switch your base currency at IB to CAD and hold it. Sure you pay interest on USD positions as IB is loaning you USD, but if your view was that CAD is going to parity, well there you go.

I have the same problem and after doing some research, these are the only choices I could come up with. Actually in my case it's worse as my equity isn't even the amount needed for the mini CAD futures. If others have more suggestions, please do tell.
 
The problem with using CME futures is that the contract is too big at C$100,000 to trade. I would recommend using idealpro with US$25,000 lots.

Right now the $C is at 0.8830. If you have C$84,978 (US$75,000) you could;

sell C$28,313 at 0.8900

sell C$28,313 at 0.9000

sell C$28,313 at 0.9100

If you got these fills you could then buy C$ back a similar intervals. Instead of round numbers you could try using fibs instead.

Year to date this would have worked well. Historically it would have worked a lot better than what I know most Canadian investor have done on there currency game. Why is it that nobody wanted to own a 63 cent dollar but everyone wants to own a 89 cent dollar?
 
Quote from drukes1234:

I have no interest in trading or predicting currency movements, I'm not good, nor do I claim to be good at it. The reason for this post was to find a way to completely avoid speculating. I'm thinking that maybe the best way to be as neutral as possible is to have half my currency in CAD and half in USD. Basically the problem is this. If I hold Canadian dollars and the CAD falls then my buying power for US stocks goes does therefore my profit goes down. If I hold USD and the USD falls, then my account just sitting there loses money. I think I will still continue to hold Canadian $'s because I'm a fairly infrequent trader so it's not like the conversion is happening all the time, however, I'm going to consider the possibility of half USD half CAD. Any thoughts?
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I think if followed one of these free advises you might now so happy> see the Dow where it is now 10890. by the way you still have other chances in Oil, currency, Gold and some companies. see our two links for your info and might use.

http://www.elitetrader.com/vb/showthread.php?threadid=72080

http://www.elitetrader.com/vb/showthread.php?s=&threadid=71997
 
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