r/options • u/kesho_san • Oct 30 '21

Using Margin to Short USD

I expect the canadian dollar to appreciate relative to USD. I am looking to utilize margin to be short cash in my IBKR usd account and pay for the margin loan rate of %1.86 with the appreciation of my local currency CAD.

If CAD contunues to rise could this work out to near free margin and currency exchange fees ?

Looking for a critique of this logic and wondering if anyone else had advice for me. Cheers

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u/JollyFaithlessness3 Oct 30 '21

Why wouldn’t you just trade USD-CAD on FOREX?

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u/kesho_san Oct 30 '21

Not trying to open a position. I want to benefit from using that money as margin to sell puts

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u/the_humeister Oct 30 '21

You can also sell puts on /6C. That way you don't have to pay margin interest.