Norbert's Gambit: Changing USD To CAD

This calculator is here to help you save money when you convert US Dollars to Canadian Dollars. Norbert's Gambit is a technique that involves buying and selling a single security in two currencies. Just use this calculator to find out out many units you need to buy and sell in each currency. The calculator will also determine your effective exchange rate and the amount that you are saving by using Norbert's Gambit. Happy trading!

Enter values for DLR and DLR.U
Enter the commission you pay
The units you need to buy and sell
Your effective exchange rate

Using The Calculator

  1. Enter the amount of US Dollars that you want to change into Canadian Dollars.
  2. Update the prices for DLR and DLR.U. The form will automatically pick up current market prices from Yahoo Finance, but you may need to adjust them.
  3. Enter the commission that you will pay in your brokerage account.

Once you have completed the form, take a look at the amount of Canadian dollars that you will receive. You can also see the amount that you save by using Norbert's Gambit.

* 'Money Saved' is compared to the typical rate of 1.5% charged to retail customers

Trading Instructions

  1. Buy units of DLR.U at , on the US dollar side of your account.
  2. Journal the DLR.U to DLR. Your broker may do this automatically for you on the settlement date, or you may need to request them to do it.
  3. Sell units of DLR at , on the Canadian dollar side of your account.

These are the trades that you need to complete in your brokerage account, based on the numbers in the form. Note that the exact technique for implementing these instructions may vary from broker to broker, and exact prices may also vary.