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billmc1
@mountainaccess.net

billmc1

Anon

Lock in conversion rate

Hi, my question is; how could I lock in a conversion rate at todays rate for a transaction in the future. If I had some real estate to be sold in 6 months in Canada for example and I am going to convert it to US dollars when it is sold. I am happy with today's rate which is approximately dollar for dollar and I don't want to risk the exchange rate going down to receiving 80 cents for each CAD in 6 months. I figure I would have to buy some future options or the like and how much would it cost me?
37563929 (banned)
join:2010-12-30
Cleveland, OH

37563929 (banned)

Member

If you can figure out how to do that there are loads of investors that would be willing to pay for the secret.

Waldothe3rd
Premium Member
join:2009-02-16
Sun N Sand

Waldothe3rd to billmc1

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I don't think this is possible, at least on the consumer level. Big corporations with international offices might be able to levy something like this through their respective banks but in the end they all calculate profit based on certain conversion rates. Your best bet would be to sell, and if the rate isn't what you like, wait a while and (hopefully) it will become more favorable.

SparkChaser
Premium Member
join:2000-06-06
Downingtown, PA

SparkChaser to billmc1

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It hasn't changed much in the past year

»www.xe.com/currencychart ··· &view=1Y

EUS
Kill cancer
Premium Member
join:2002-09-10
canada

EUS to billmc1

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said by billmc1 :

I figure I would have to buy some future options or the like and how much would it cost me?

This is exactly what businesses do to mitigate fluctuations in FX, the idea being they don't gain, or lose anything.
The cost will be up to the bank where you purchase your contract.