I saw this idea in Reddit comments by u/differing:
I often wish I invested early in the weed stock bubble in my TFSA, not so much for the returns but more to supercharge my TFSA room and transition into more conservative investments. Obviously hindsight is 20:20
If you withdrawn when your volatile investment is very high (hehe), you get back that contribution room the following year.
You can then invest in lower risk stuff and pad a $100k+ TFSA full of index funds, bonds, etc.
Am I right that you can legally outstrip the original contribution room?
With the TFSA limit at $6,000 for next year, the total room available in 2019 for someone who has never contributed and has been eligible for the TFSA since its introduction in 2009 is $63,500.
Suppose there are 2 stocks, A and B, which both finish the day at $5 per share and traded between $4-6 during that day with the exact same price throughout the day. She had stock A in her TFSA and B in regular trading account.
If she wanted to swap honestly, she could swap out 1A for 1B as they both closed at $5.
However, as she was able to choose the price she swapped out A at $6 and B in at $4. This is 1A for 1.5B. Because she now has 1.5 B at $5 market price, her TFSA portfolio is worth $7.50 instead of $5 and she created an artificial $2.50 of room at no risk.