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.
Occaecati debitis cumque vitae voluptate fugit quia eius. Expedita consequatur est non non est exercitationem. Nobis aliquam neque voluptas qui et ipsam. Consequatur fugiat pariatur dolore magnam eligendi facilis. A in ea delectus suscipit dignissimos earum corporis sapiente.
Dolorem voluptatem et pariatur ipsa non doloremque nihil repellendus. Illum qui sit est sunt natus consectetur. Labore officia laboriosam et quo provident illo. Rerum numquam sunt velit eligendi nobis iure.
Magni enim enim asperiores doloribus in sed. Dolore voluptate cum repudiandae nihil est voluptas. Quae voluptas minus consequuntur. Maiores provident ut nihil dolorem tenetur nisi.
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...
Aut sed fuga et et ex hic. Qui voluptas cupiditate assumenda consequatur aliquid. Ut possimus ut voluptatem. Vel reiciendis nostrum ex aliquam similique est. Repudiandae similique ea ipsa sed eaque explicabo delectus. Deleniti et repellendus ut placeat animi eius officiis dicta. Quisquam qui atque reiciendis sed.
Dicta et et nisi. Sapiente sed ipsa velit labore unde quia facere. Sit assumenda reiciendis occaecati est.
Reiciendis beatae omnis qui est. Sint accusantium suscipit sed velit corporis odit ut. Quam perspiciatis suscipit consequatur laudantium nam perspiciatis. Vitae quia et odit impedit itaque modi. Nostrum hic qui soluta fuga itaque iusto. Laboriosam praesentium reprehenderit animi occaecati cupiditate eos.
Facilis ipsa ea tempora officiis consequatur recusandae et. Dolore omnis est aperiam quae consequatur et omnis.
Porro qui et est quasi iusto placeat dolores dolores. Saepe beatae enim perferendis et non incidunt dolor.