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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: John Dally who wrote (5741)	8/21/1998 11:36:00 AM
From: Bosco	Respond to of 9980

Dear John - 1st, I must confess I know very little about currency trading [and I hope someone here will teach me a thing or two <g>.] While it may be true investors may hedge currency risk by trading currency futures, unlike stock shorting, currency attacks are short term due to the associated cost of borrowing. Like I say, I really know nothing about currency trading! So, we need to know why there is a limited downside risk [even though I can certainly see the potential windfall for the hedgers if and when HKD did de-peg from [and re-peg at a lower level to] the USD. If memory serves, Mr Soros made $1B [USD?] by attacking the British Pound a few years ago. However, he also lost 100s of millions in his failure to overwhelm the eurobonds. So, that leads me to believe that it is a high stake poker [note: my assumption is that HKMA is not a bunch of yahoos <g> like a daughter of a SE Asian dictator who tried to sell $50,000 USD as an effort to support the local currency.] best, Bosco