norbert's gambit

sts7049

Joined: Jul 2, 2004

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i was talking with a colleague today from canada, and he told me about this trick where you can exchange CAD for USD without having to deal with bank exchange rates. link

is this possible to do with other countries and currencies as well? or does this only really work between CAD and USD?

Casey TableTennis

Joined: Aug 28, 2013

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8:27p, 3/27/19

This isn't free. You are introducing price and exchange rate risk. A stock can easily move 1-2%+ during trade settlement. Currencies can move against you too, which the article mentions.

Given the extra hassle and the introduced risks, hardly seems worthwhile except in rare situations.

sts7049

Joined: Jul 2, 2004

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3:39p, 3/28/19

yeah, i know it isn't free. and you introduce risk depending on what the stock price does but in that article that ETF was good for this exact purpose.

the exchange rate doesn't really matter too much though doing it this way the way i see it, it will always fluctuate but once you buy the stock it's locked in.

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