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Depends on what kind of investor you are, what sort of resources you have and how much return you are willing to sacrifice in fees. Seeing that you are asking here gives me the suspicion that you really don't have a way to do it.
Interesting part is the long HKD. Which is purely and unabashedly a speculative move for an American investor since the HKD is pegged to the USD. So its basically shorting the Euro or whatever currency you want to pair with the USD, but adding on a bet the HKD peg will be abandoned. Gee I don't know, I mean sure it could be abandoned but taking a wild swing for the fences when you could just go short the Euro would seem enough to me.
Depends on what kind of investor you are, what sort of resources you have and how much return you are willing to sacrifice in fees. Seeing that you are asking here gives me the suspicion that you really don't have a way to do it.
Interesting part is the long HKD. Which is purely and unabashedly a speculative move for an American investor since the HKD is pegged to the USD. So its basically shorting the Euro or whatever currency you want to pair with the USD, but adding on a bet the HKD peg will be abandoned. Gee I don't know, I mean sure it could be abandoned but taking a wild swing for the fences when you could just go short the Euro would seem enough to me.
Bill Ackman bought $100M of Hong Kong dollars.
He is betting they are forced to re-peg their currency to the Chinese Yuan instead of the dollars. His time frame in early next year. If they do, he says the Hong Kong dollar will go up 30% on the same day.
Then he said his investment can make 100 times his investment, if the Hong Kong dollar rises is value once pegged to the Yuan.
He is one of the world's largest investor. BK on CNBC bought the Hong Kong market, some how, and he used Hong Kong dollars to do it.
I've never traded currencies, so look for the tools.
When you have hedge fund money you go out and borrow in foreign currency with a swap agreement and the banb which sells it to you collects a very nice premium for what they would view as a very low risk transaction. You won't be doing this.
Hackman is predicting, with his investment, that Hong Kong will make a change and let their currency peg with the Chinese Yuan. It would give an instant 30% return, if he is right and if his numbers are correct.
If only it was so easy. HKD is not convertible to yuan and the yuan is subject to very strict capital controls. Without those going away there seems to me little chance the HKD revalues in that directon.
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