As the title suggests I'm wondering whether hedge funds can actually trade minor currency pairs. I don't have any data about trading volumes in e.g a currency pair such as CADAUD, but hypothetically speaking if a big macro hedge fund wants to express a view on those two countries through the exchange rate, could it actually put on a respectably sized position, or would that move the market too much forcing it to use a vehicle currency?
| +28 | Advice ahead of a pair trade presentation - HF interview | 7 | 5d | |
| +27 | College search for getting into HF | 23 | 1d | |
| +26 | Why are so many people here interested in Biotech? | 32 | 2d | |
| +24 | Background check issues | 5 | 2d | |
| +23 | VP HF Lateral To PE | 1 | 4d | |
| +20 | % hit rate on quarters | 14 | 3h | |
| +19 | Drunk Thought: Shouldnt PM's at MM inverse their Portfolio's? | 6 | 4d | |
| +17 | How to learn more about Cyclicals? | 6 | 1d | |
| +17 | Is fundamental L/S equity a dying strategy? | 15 | 3d | |
| +15 | Point72 Academy Experienced Professionals Case Study | 3 | 1d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
.
AUDCAD is not a minor cross at all and is very well trafficked...you can easily do hundreds of millions of dollars worth of it no problem without moving the market much. Hedge funds trade just about every currency pair there is including those which are much much less liquid then that one.
Any of the G-10 crosses are pretty easy to trade (scandies being the only one with relatively lighter liquidity). When you get into EM ccys then you're in another ball park.
Since when have the Canadian and Australian Dollars been considered minor currencies? Even then New Zealand Dollar is considered a major currency that is traded by every Global Macro, CTA, Currency hedge fund managers.
Thanks for the answers guys. Sorry for the rather ignorant question, but I'm a Physics student and just started to get interested in Global Macro Trading.
Does anybody know any good papers that shed some light on the market structure of the FX markets?
You'll learn more about micro-structure of any market, not only FX, by executing trades. The worst possible way to start is by reading academic papers, however here's a great book on the topic: http://www.amazon.com/Trading-Exchanges-Market-Microstructure-Practitio…
Recusandae qui assumenda est officiis molestiae ut. Non iusto ad autem mollitia consequatur earum. Repudiandae labore magni reprehenderit.
Vel dolore quis repudiandae fugit voluptas quis et. Et provident ducimus necessitatibus voluptatem voluptatem ex. Saepe exercitationem aperiam amet officia excepturi quidem iste id. Autem ut qui ad repellat.
Aliquid aut laborum ex fuga corrupti est aliquid. Voluptatem harum qui aliquid occaecati ut. Non fugit sed qui dolores nemo quaerat ipsa.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...