$1.24 is the cost in CAD to buy 1 USD. 0.81 is the cost in USD to buy 1 CAD, plus banking fees which vary. It is not quite the inverse, there is a spread.
Take advantage of the strong Canadian dollar 1.24
- Thread starter IRUNGUNS
- Start date
$1.24 is the cost in CAD to buy 1 USD. 0.81 is the cost in USD to buy 1 CAD, plus banking fees which vary. It is not quite the inverse, there is a spread.
And in between that time it was at par, now that is what I call a strong Cdn peso. (Actually it was a weak US dollar, but lets not spoil it!)
Candocad.
there is no spread, currency conversion rates are in fact inverse (plus fees and whatever rate you can actually get from your financial institution).
The ratios above are just rounded.
1/1.24= 0.8064 USD to buy 1 CAD
1/.8064=1.2400 CAD to buy 1 USD
Do you trade currency? In reality, there is in fact a spread. I traded equities for 15 years. But we digress....
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Man I miss those days!
- Location
- West Quebec
There has to be a spread - otherwise no one would make the market.
Not a lot, just a few hundred grand a year us/cad in forward contracts for purchasing over the border to eliminate fx risk..
Of course there's a spread on the bid and ask for actual converting, and that spread changes depending on what you have available to you (interbank vs atm vs cc vs going to a kiosk/bank).
I'm strictly talking in layman's terms about doing a simple conversion, there's no spread/anything else to calculate, where people in this thread don't understand how to get from 1.24 to 0.81 (inverse), or people who don't understand if we're at .75 it costs 1.33 for a usd dollar instead of 1.25 (been asked that one by otherwise quite intelligent people). If you can't get from one to the other at two decimal places, you're a far cry from being concerned about basis points.
In simple terms: to convert from one rate to the other it's the inverse, to physically do the transaction there's a spread; it's going to cost you some fees (but it depends on your purchasing power)
Was trading $6 million a day, not that that is relevant. I stand by what I said the first time. Glad you came around to clarify things lol
I just wish they would get a more diverse inventory on the Canadian site. Yes I know I could order from the US site but, waiting up to 45 days is a killer. I've got $700.00 in US dollar Visa cards (Christmas gifts) and there's nothing on the Canadian site I want or need...
If you would like to spend those gift cards on www.irunguns.com please order before the 15th and you will see it the first part of February. I know that can be a bit of a wait but years ago ordering out of stock items from your local dealer took 6 months to a year. Unfortunately due to costs, the ITAR, and export controls we only export once a month.
Have a great weekend.
Have a great weekend.
Potato boy
Regular
- Location
- North of the mountain
I've purchased all my M1A's off you guys, when it was on par or not. When the exchange goes up, the Canadian retail goes up anyway. Whether the dollar is high or low, IRG is usually 10-15% less on M1A's in my experience. Thanks guys.
