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Dealing with USDCAD volatility in trading accounts


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  #1 (permalink)
 Growler 
Vancouver Island, BC, Canada
 
Experience: Intermediate
Platform: Sierra Chart
Broker: IB
Trading: E-micros, Options, Stocks, ETFs
Posts: 53 since Nov 2017
Thanks Given: 9
Thanks Received: 30

For all the non-USA based traders out there, just wondering how you deal with the swings in account equity due to USD FX volatility.

I am often taking swing trades in US stocks and ETFs, but my account basis is CAD. Holding trades with a USD basis creates large swings in account equity based on the mark to market USDCAD conversion. I find it troubling to figure out how to manage this.

Just curious to hear from others how they deal with this dynamic.


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  #2 (permalink)
 olobay 
Montreal
 
Experience: Intermediate
Platform: MultiCharts
Broker: DeepDiscountTrading.com
Trading: CL
Posts: 364 since Jul 2011


Growler View Post
For all the non-USA based traders out there, just wondering how you deal with the swings in account equity due to USD FX volatility.

I am often taking swing trades in US stocks and ETFs, but my account basis is CAD. Holding trades with a USD basis creates large swings in account equity based on the mark to market USDCAD conversion. I find it troubling to figure out how to manage this.

Just curious to hear from others how they deal with this dynamic.

I assume you are trading with IB Canada? If you don't like your CAD account fluctuating with the exchange rate, change your account basis to USD.


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