Forecasting currency changes using Econometrics
Hi,
I was just wondering if econometrics is often used by traders themselves to forecast currency changes? Is that something that often happens in IB's such as RBS, JP, GS etc? Or is it mostly trader's hedging their risk? Also what does it mean to 'hedge' your risk
The reason I am asking is I'm writing a personal statement to apply for Economics at university and I had previously done some work experience in RBS in their Markets division and I was really interested in how mathematics and economics is used in finance.
Thank you
Sometimes econometric methods are used, but that's not common among traders... People who do research, such as economists and strategists, use econometrics often.
"Hedging your risk" means doing something to a portfolio that reduces or eliminates the possibility of loss, when a particular market move occurs.
Molestiae dolores debitis tempora impedit molestiae velit. Debitis assumenda totam iusto necessitatibus. Perspiciatis asperiores molestiae ipsam veritatis distinctio tempore. Ut porro corporis ab.
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...