November 2011
Beginner
335 pages
9h 33m
English
Many types of repo transactions exist around the world that all have huge implications for the spot-currency trade. For example, Europe and Great Britain traditionally traded a floating-rate repo where the repo rate and maturity of the repo were left open. A rise in these transactions usually signals an interest-rate change, usually an anticipation of a rate hike. This was an easy trade for spot-currency traders as a rise in floating-rate repos was the first sign that central-bank borrowing costs were too low and a rate hike was imminent. Once the hike was announced, traders settled their repo and currency transactions with a profit. Currency traders could act accordingly based on floating-rate ...
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