pps wrote:I don't have any friends/family who have any us dollars.
Why do you say I can't be bothered? If there is no other way than through buying Canadian stock and selling it on US market for USD, then obviously I'll open stock account so that I'll be able to do it in the future. The thing is that I'll have to convert some money today/tomorrow and I asked if there is some sort of online exchange that offers better rate so that I could use their service
for stock buying selling, what's usually recommended? I signed up with rbc
Norbert Schlenker wrote:What are their spreads like on spot trades? Say on $100k? WIll they even do smaller business, like a $10k exchange?
Investors who have CAD and USD accounts with a broker and want to convert their loonies into greenbacks will buy units of DLR using Canadian dollars. They will then sell DLR.U and when the trade is settled, they will receive the proceeds in US dollars.
Note that unlike the Norbert Gambit with inter-listed stocks, investors are taking zero market risk when trading DLR/DLR.U.
Horizons wrote:* Ability to redeem DLR for USD proceeds in increments of $250,000
newguy wrote:The only purpose seems to be for exchanging currency.
newguy wrote:IdOp wrote:I strongly suspect Cdn Capitalist is mistaken.
Maybe, but he said it starts today.
Shakespeare wrote:My guess is that a high-volume interlisted will still be cheaper because of narrower bid/ask spreads.
IdOp wrote:Here is the Horizon's page for DLR.U.
IdOp wrote:In the quote I got this morning the bid-ask spread for both DLR and DLR.U was 2 cents. This may not be typical, perhaps Horizons is arbitraging it well on its debut, who knows.
I do think however it would have been better if they had pegged this at U$100 instead of U$10. That would allow spreads to go lower if possible. Even at this morning's quote, 2 cents on U$10 is 20 basis points ... not terrible at all, but if someone is willing to arbitrage it more cheaply than that, U$100 would let them. In the US, FXC is ~ $100 for example.
adrian2 wrote:ISTM that the quote on DLR.U will be "permanently" bid $9.99, ask $10.01. After all, it's like exchanging twenties for tens. So one way to save a few bucks when doing the NG with DLR, would be, when required to buy /sell DLR.U to bid /ask $10 even, and keep the trade active for 30 days or so. Even if the trade takes a few days or weeks to execute, you bear no risk at all by waiting (ignoring the few pennies in interest you might have earned on "real" US$. Eventually, your bid/ask will be hit by somebody doing the NG the other way around.
Bylo Selhi wrote:What am I missing?
big easy wrote:So you still have to call your broker and ask them to sell your DLR as DLR.U (or journal over to cancel the short)?
In the real world anything's possible. I can think of no good reason for them to refuse, it should go smoothly.Can they refuse?
It doesn't matter, it's the 2¢ spread that matters. Right now there is $100k at the bid and ask (and the US is closed).Big Bob wrote:I have been watching this one and I think I have spotted the flaw - DLR appears to be very thinly traded. I only have data for the TSX so if it trades elsewhere I might need to re-think this but it can go days without a trade.
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