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Bank of Canada recently announced reduction in its prime rate. As a Canadian, is there a way to take advantage of it? For example, if I bet that in the next 12 months, the rate would increase, how can I make money on this bet?

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    Short sell long term bonds? Jan 22, 2015 at 23:00
  • @EkoostikMartin - I was going to suggest buying puts on the long bond. Jan 22, 2015 at 23:28
  • Another option is to buy non-Canadian currency you think will do better
    – jlewkovich
    Jan 23, 2015 at 0:51
  • @JL a rising rate can attract foreign money and actually cause the Looney to rise, not fall. Jan 23, 2015 at 3:09
  • @JoeTaxpayer: Can you elaborate please? What do you mean by long bond?Is there a bond etf for this (like XBB)?
    – Victor123
    Jan 23, 2015 at 15:23

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