Exchange rate

[carebear300]

Am sending out urgent SOS!!!!!!! How would I go about hedging the canadian dollar(cause I am almost sure that it is going to keep appreciating in value against the U.S. dollar(U.S. deficit and Bank of Canada's monetary policy)? Please make it dam simple if you can because I am really lost when you people talk about this but I think it is really important for me to too do to protect my business.

[farmboy044]

if you are darn sure its going higher......open a commodity account....then give orders to buy the june C $. its just that easy.
then watch as fear, emotions, common sense slowly eat at your account and you have to add margin money.

[crusher]

Correct, open a futures trading account and buy the Canadian Dollar. Nothing wrong with that - it is a hedge. Farmers get into trouble when they use their trading account for speculating. Also see a previous thread on other ways to hedge the dollar, through banks or by using call options. On your first try it might be best to go with the call option.