Can IB account in US$ trade stocks in foreign market? How? Thanks!

happypuppy

Hi, I have IB account in US$ currency. Just wonder if I can trade stocks in foreign market, for example, Canada or Japan market? I assume the stock price in those markets are in their local currency ( canadian dollar or Japanese Yen),  how do IB calculate the cost if I have a US$ only account?

Do I need to exchange my US$ to foreign currency and then open a separate account with IB?

Thanks for your help!!!

javamood

you don't need to change to foreign currency if it is a margin account. but when you buy foreign stocks, you will automatically short the foreign currency. after you close the stock positions, if you end up with some loss in currency part, you may see it in balance as far as i remember.

happypuppy

Thanks Javamood!

egghead1

or you can buy that foreign currency in your IB account first and then buy the foreign stocks. Then you won't be short the currency.