Trading foreign stocks with different currency causing issues

A

apo99

Hey guys,

I have been trading the Canadian TSX and TSX-V for about 10 years now and have been able to replicate and export my current strategy successfully to the Australian exchange (ASX) using IB. The issue that I did not consider is that I am transferring a significant amount of $CAD into $AUD. Even though I am up 25-30% a year on the strategy I am still at the mercy of the $AUD vs $CAD.

How do you guys who trade outside of your home currency factor this in? Just hope it works out and wire out your profits when you’re at parity?

Any ideas would be appreciated

apo
 
So your question is about currency hedging, in your case from AUD to CAD. This topic has been discussed many times here at ET, although often related to different currency pairs. You may want to look up those threads to get ideas on what possibilities there are.
 
Hey Guys, im bringing this up again,

I Converted all my $CAD in to $AUD and was trading ASX stocks from that account but holding it in $AUD negated any gains i had.

Does anyone just trade foreign equities with their home or base currency to mitigate any currency risk? Since i have a margin account with IB i believe this is doable.

Sorry for all the questions im completely new and lost when it comes to trading foreign equities

Apo
 
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