How Currency Markets Work
Description
An insider's original take on how global currency markets operate in the real world
In How Currency Markets Work, a veteran currency trader and a geopolitical risk analyst deliver a comprehensive and street-smart guide for understanding currency markets. The authors combine insights from the worlds of trading, economics, and geopolitics to create an eye-opening and original new take on how currency prices are determined.
This book bridges the gap between how currency markets are taught and how they actually trade, using character-driven narratives built on real-world market events and data to explain currency trading successes and failures in intuitive and practical ways.
Inside the book:
- Actionable tools and tested strategies for currency trading you can apply immediately to improve your returns and your portfolio's risk profile
- Clear real-world examples of how geopolitical events, wars, and political shifts impact currency values
- Profiles of the speculators, corporate hedgers, and central banks whose interplay shapes exchange rates
- Advanced strategies for options, volatility trading, and exploiting mathematical relationships in currency markets
A deeply insightful and accessible exploration of a much-discussed topic, How Currency Markets Work is a powerful new resource for academics, researchers, hedge fund managers, bank traders, policymakers, and practicing and aspiring forex traders.
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Persons
ANDREW NISSENBAUM is the Founder and CEO of Macrofund and a seasoned interbank currency trader. He served as Head of Macro Research at Soros Fund Management's Quantum Fund and ran the top-ranked Hypothesis Macro Fund LTD at the age of 22.
PATRICK CULLEN is a Geopolitical Risk Analyst with a PhD from the London School of Economics and Political Science. His work in the intelligence sector includes strategic foresight and horizon scanning. He is a thought leader in early warning and detection of hybrid threats.
Content
Preface xiii
Acknowledgments xv
Chapter 1 The Global Currency Market 1
Chapter 2 Speculators: The Bank of China, Proprietary Desks, Hedge Funds, and Retail Traders 17
Chapter 3 Corporate Hedgers: The Hidden Giants of Currency Markets 39
Chapter 4 Market Structure: The Architecture of Major and Emerging Currencies 59
Chapter 5 Trading Political and Geopolitical Risk 81
Chapter 6 The Psychology of Currency Trading 101
Chapter 7 How Traders React to Market Events 123
Chapter 8 Liquidity, Volatility, Basis, and Tail: A Trader's Guide 141
Chapter 9 Stocks, Bonds, and the Currency Markets 159
Chapter 10 Mathematical Patterns in Triangles, Convexity, and Forward Gaps 177
Chapter 11 Advanced Trading: Probability, Volatility, and Speed 195
Appendix 217
Glossary 221
About the Authors 231
Index 233
