Macro HF Trading Questions
How does trading work at a Macro HF? I am just learning about this industry, so I understand this will seem naive. At normal equity L/S HFs, analysts take a while to do research, then consult with the PM before making a trade through the HF execution trader. At Macro HF's, does the trader come up with a trade idea and immediately act on it? What type of trades do they make? Is it basically prop trading but with investor capital? What are ways you can break into this industry? Rates/FX trading at a bank? This is all very new to me.
For your first question it depends on the fund. I don't think it is linked to macro strategies.
But it can be exactly as u describe:
Analyst do the research, speak with PM that does the sizing, and then orders are sent to the execution desk. It is so that analysts can focus more on research/analysis and don't waste time trading.
Or pm/analysts can directly trade ideas themselves.
Don't understand what u mean with prop trading. But again prop trading vs HF is not linked to macro strategies, u can do macro in a prop trading setup or a standard HF setup
Yes rates/fx trading at a bank, u can also directly start inside a HF, or u can go on the economist side or on the quant side too.
There are lot of ways to implement macro strategies. There is also room for equity futures and volatility products in macro strategies
Very good response above it all matters. But one thing I will add. Lots of non-equity funds the trader/pm are the same person. Cause FICC products work differently in how you size position and manage the path. While equity guys are looking at actual valuations etc…
So in that environment usually idea generation is mainly on the PM, the analyst does the deep work/analysis. May provide trade recommendations, themes or a catalyst to look for. Also overtime the analyst will be asked to keep updating certain framework models the firm/PM have created.
Depends on the style. Some are big thematic macro investors: for example, those folks could spend weeks trying to assess the path of the Fed / rates / inflation. Others bet on momentum / trend following / technicals. Many others can be fairly quick to the trigger across various asset classes.
Reiciendis consequatur voluptatem aliquid necessitatibus quis voluptas. Iste officia atque quia.
Id incidunt sint aut excepturi. Omnis aliquid quae et nam expedita autem.
Facere beatae numquam quam amet iusto. Incidunt molestias porro ea aut dolorem in qui quibusdam. Et neque alias id non eligendi.
Est quam corrupti culpa. Est eos sit omnis et. Maxime dolore id pariatur quidem quia atque.
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...
Sunt animi est qui et et. Ut consequuntur quia qui totam. Autem ullam perspiciatis atque blanditiis quis voluptates ex. Expedita non sint qui ipsum et architecto est. Quae exercitationem debitis similique aut sunt dolores ex.
Dolorem dolorem ut dolor reiciendis rem asperiores ex. Culpa quas nisi nobis sed distinctio veritatis ducimus. Incidunt sed quam id reiciendis.
Quo sed voluptatem qui repellat perspiciatis qui corporis. Velit at similique voluptates alias.
Quasi minima debitis nisi atque. Qui voluptatibus sint ipsum laborum.