I don't understand this: "I am now fully hedged"

Discussion in 'Trading' started by OddTrader, Oct 8, 2006.

  1. Q

    I managed to sell $750 million worth of yen short before it broke. When the DM failed to resist the rise in the dollar, I reduced my DM position to $750 million. I am now fully hedged, long in DM and short in yen. I did not make any money on the maneuver, but I avoid giving back my profits.

    --- The Alchemy of Finance, George Soros, page 271


    Your exploration/ discussion/ input on the above would be appreciated.
  2. 750 long, 750 short
    He's hedged against USD movements
    He has exposure to the two countries

    I guess "fully hedged" is just referring to the USD...
  3. How about any movement of DM against Yen?
  4. fully leveraged?
  5. I don't understand that either.

  6. fully leveraged simply means you'll get your arse handed to you if you're wrong.
  7. I really disliked (and didn't fully understand all of the ramblings in) this book or I would open it up and see if I could find out whether Soros was just referring to the dollar in this passage.
  8. all bullshit....he made his money by being connected.....same thing for all piggybackers---from that era---there was so much collusion on positions....and inside info....les alexander....carl icohn(sp) soros....even kramer....once you are well connected and gain some leverage....you can`t lose---and being well connected---eventually gets you leverage----icohn was "self made".......except is uncle gave him 400,000 to buy a seat on the nyse....when he was starting out....all bullshit when you get into those rediculous amounts of capital being made with no product being produced.

    Les alexander got 25 k from relatives.....but it was being connected to the dealers/players in new york that helped him piggy-back on their deals to amass 85 mm from that 25,000 seed money...not jealous......just know that donald trump`s dad was a real estate guy in queen`s and helped him do this big deal for an apartment rennovation to start him on his way....there was nothing self-made about donald trump....all propaganda hype....whenever you hear self-made yo are being manipulated by spin-doctors....people who are more self-made than others don`t need to spend money on bio`s that promote this idea/crap.....everybody has help to some degree...just well connected people have a little more of it than others....for instance my sister has a phd....and her husband for that matter....were both in the same phd program that candi-rice was in at boulder....the only difference between them and her is connections....she is well-connected with the bush family....nothing more....you saw who w....ws going to elect to the supreme court.......a family friend......and candi/albright were never qualified for those positions----hilliary told bill who she wanted.....and bush doesn`t like being intimidated by smart and strong leaders.....so he promotes somebody he feels comfortable with:)
  9. qft.

    It's not what you know, it's who you know.
  10. We don't have to be hedge funds operators in order to learn how other people trade from this kind of books, that would be the only valid source supplying information of how real traders trade.

    So what would be the books you read?
    #10     Oct 14, 2006