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Risk, Account & Money Management

Discuss about risk, account & money management

40 topics in this forum

  1. An Infographic for Day Traders

    By Robert H,
    • 4 replies
    • 2,601 views

  2. How to deal with a EUR/CAD account ?

    By TOTO7469,   
    • 13 replies
    • 4,218 views

  3. Why having a daily profit target is important? 1 2

    By Andrew Aziz,
    • 24 replies
    • 7,800 views

  4. Advice for trading a small account and not getting killed by commissions

    By adrian88,
    • 2 replies
    • 1,334 views

  5. Automating stop loss based on account percentage

    By Anthony1231,
    • 1 reply
    • 1,730 views

  6. Commission Management (small-size)

    By Bierzar,
    • 2 replies
    • 1,294 views

  7. Converting entire account from CAD to USD

    By dgiagio,
    • 2 replies
    • 1,162 views

  8. Curious what you guys use for quick calc for shares/trade

    By Sapperstien,
    • 5 replies
    • 866 views

  9. Daily Profit Goal and Margin

    By Paul L,
    • 1 reply
    • 650 views

  10. Daily Profit, Daily max Loss 1 2

    By Mohamed Omar,
    • 16 replies
    • 3,699 views

  11. Day Trading Canadian Taxes and Business Structures

    By Palashe,
    • 0 replies
    • 47 views

  12. Day trading margin requirements

    By GordonDK,
    • 11 replies
    • 2,361 views

  13. Entering trade and taking profit within a min

    By Aaron B,
    • 1 reply
    • 1,143 views

  14. Goals, is 2% too optimistic for a newb?

    By hailchaser2,
    • 13 replies
    • 1,428 views

  15. Hardware Malfunction and the Risk Controls

    By Rusty P,
    • 0 replies
    • 193 views

  • RECENT POSTS

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      By Teruki · Posted

      I chatted with an IB representative who was very helpful. In short, it seems like there is nothing to worried about when it comes to the exchange rate. I don't think you have to convert everything to USD (or deposit in USD) either. Here is an example. If I have $1,000 CAD and $0 USD and I want to buy a $100 stock, then I am borrowing $100USD from IB. At this point, I have -$100 balance in USD. If I have a winning trade and now I sell the stock at $120, then I have a $20 profit. My USD account balance now will be $20. If I lose and sell the stock at $80, then now I have -$20 balance in USD. For -$20, I will have to pay some interest to IB or you can convert the amount from your CAD balance. As you can see, there is no place for the exchange rate to come in because I would be simply trading in borrowed USD, not CAD that is converted to USD.  However, the exchange rate changes every day and when it comes to the total balance shown in USD it changes every day even if you don't trade at all. With the $1,000 CAD scenario, if the USD/CAD  exchange rate is 0.8, then your balance in USD is $800, but if the rate drops to 0.78, then the balance will be $780. You would still have $1,000 Canadian. If the CAD value drops significantly, then the total value of your balance in USD drops significantly too and even if you win some trades (in USD), you may have less USD equivalent (as your base currency) at the end of the day than when you started trading in the morning. I think it is what happened to the OP. But I believe you would still have your original CAD balance in your account (plus the positive USD won in the trades).     
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      Thanks for sharing, however the link https://www.behance.net/gallery/27641581/Classic-Chart-Patterns-Print told me "Oops! We can’t find that page." Could you give and advise how to get that quality images. Thanks  
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