Striking a balance in FX management. Treasurers generally have had two options when managing cross-currency payments and receipts. These options can be broadly defined as: Strategic FX management to hedge present or future cash flows.
Have rebalanced positioning and added to it. Now at 99k exposure total Position Value. Account balance $100,617.80 USD
Interesting thread, I'll keep watching. Thanks for sharing your ideas! Is this a purely quant approach or discretionary as well?
Have rebalanced positions and added. Position value now at 105k Balance has increased to 100,688.95 USD
Have rebalanced, no new additions. The position value is slightly above zero leverage target of the actual balance. I will have to recalibrate exposure sizes, this will continually be a factor since the exchange rates are constantly changing. Account balance: $100,706.88 USD
Have rebalanced positioning. Enjoy the weekend! I still need to recalculate position exposure, so it is closer to 100k. Will do that this weekend. Balance USD 100,731.66
I hope you all had a great weekend! My Sunday was spent whitewater rafting with 3 good friends, I will post a GoPro video of it after my friend is finished editing it. Have rebalanced and added the final position. Position value is 111k. The account balance is now $100,794.28 USD
My thoughts, a lot of traders are going to get smoked in the next few days/ weeks. Especially in Aud crosses, it's been handing out free money to people riding the trend, which I believe will end soon. Currencies are always volatile and it's easy to correlate that with societal issues, but looking over past charts, it's within parameters. We seem to have had big moves since May 25th and I want to associate it with the protesting. I think some of it is correlated since the volume has been greater. Long story short, I think a subgroup of traders has moved this market and another is going to turn it around. Balanced exposure and the total position value is about 111k. I calibrated position sizes over the weekend, but currencies have been moving so much it's hard to keep up with the moves, especially when only re-positioning some currencies. Expect position value to always toggle above or under balance do to that factor, even though zero leverage is used. The account balance is: $100,855.97 USD