In our previous video, we presented some of the outcomes you may experience when performing transactions using non based currency units. Now, let's walk through the mechanics of entering trades in the overseas equities market and an online trading platform. We'll use IBKR workstation to give you a hands-on experience buying or selling shares in foreign companies, as well as ways in which you can manage your currency exposure. This illustrative demonstration, I'll show you how you can use up portfolio margin account to automatically borrow money to finance an overseas stock trade, and how to attach a currency component to the stock trade at the time of your order entry. Let's get started. Let's say in this example, you're account is based in US dollars, and you want to buy shares in a Toronto listed company trading in Canadian dollars. At the time of the trade, you have a zero balance in your Canadian dollar account and no existing stock position. You can see this using the account window on the platform. Before the transaction, you could simply enter a forex transaction to convert from base currency to the destination currency, enough foreign exchange to cover the amount you wish to trade. In this case, you might enter an order to sell US and buy Canadian dollars at the prevailing exchange rate. As a result of how the Canadian dollar deposit balance in your account and when it comes time to place the Canadian equity trade, any balance in your account would be used to settle the trade. But let's assume a zero Canadian balanced. To start the transaction, first, like the required Canadian stuff, ensure the Toronto Stock Exchange or TSC listing is displayed, then click on the buy button to generate a purchase order and select the appropriate quantity, price, and time, and force. At this point, if you do nothing when you submit the trade for execution, IBKR workstation software will detect a zero Canadian dollar balance and will automatically create a margin loan on which you'll be charged the prevailing rate of interest. Now, in the account window, you will see values for total cash balances and stock values for each currency. If you use a portfolio margin loan, your cash balance will shows a negative balance, of the value of the stock position will display a positive number. You can avoid paying interest associated with the margin loan, by undertaking the currency trade together with the stock transaction. With the ticker symbol loaded and the order entry panel, click on the buy button, and again enter the quantity, price and time enforced for the trade. This time, however, select the Advanced Expand option to the right of the order input fields, and then expand the hedge selection. From the first input drop-down menu, select FX Order. Platform software in this case, will determine the correct currency pair based on your account, base currency and the currency for the share purchase. We'll also determine which part of the currency pair to buy and which to sell. So you don't have to make any further selection. Now, check the box to the left of the FX hedge. Your order entry panel will add plus FX order to confirm that a child has been added to the parent order. Once done, you're now ready to submit the order. To see what you've just entered, look to the order preview pop-up. This will show your two transactions. One describing the stock transaction, showing that you are buying shares, and the other showing that the US Canadian dollar pair being sold. In this case, to exchange base currency to fund the purchase of Canadian dollars to settle that trade. You should be aware that the US dollar is not always the first unit listed in a currency pair. The convention for trading in British pounds is to list the pound is the main unit to read the number of US dollars, one pound buys. If you're buying shares in Barclays in the London Stock Exchange for example. When attaching the FX order to buy pounds and sell dollar, you order preview window will display up buy for the shares and buy for the pound dollar currency transaction. To monitor your open traits, go to the order panel and the activity window. We will also see the difference between a domestic stock order and the ones created for overseas stocks with attached effects orders. The stock compliant displays the parent order, the currency pair on the next line as an attachment, telling you that this is a child order belonging to the parent. When you submit your order to buy shares, the FX order will start to execute alongside the stock transaction during the filter. Upon full execution, the account window will show the long value for the shares Priceline in Canadian dollars, but it will show a practically zero balance under total cash. That's because the long cash position generated by the FX portion of the order has been used to settle the stock leg of the deal. Similarly, when you sell the stock and attachment FX order at the time of the closing trade, the ethics position will remain close to zero as the Canadian dollar proceeds are sold for US dollar. We'll provide you with additional tools so that you can practice these trades on your own, using whichever available currency and overseas stock you wish and the safe, simulated online training environment of IBKR workstations.