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Norbert's gambit

A way to convert between Canadian and US dollars cheaply by trading an interlisted security.

Canadian InvestingAdvanced

Definition

You buy a security listed on both the TSX and a US exchange in one currency, have the broker transfer it, and sell it in the other. It can cost far less than the broker's standard currency conversion spread on large amounts.

Watch out for

It involves trading costs and small price risk while the transfer settles, so it mainly makes sense for larger sums.

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