#Macro trading professional#

The simplest trade here would be to long the AUD/GBP, currently at 0.56, with the expectation that it could move above 0.60 over the next 12 months. You’ve also reviewed the central bank policies of Australia and the U.K., and you believe that rate hikes in Australia are not properly priced into the current AUD/GPB exchange rate.Īlso, since Australia is the second-largest gold producer globally and one of the top exporters, higher gold prices should boost the AUD because they’ll create a bigger trade surplus. You believe that worldwide inflation will accelerate due to massive fiscal stimulus and money printing by central banks, which should, in theory, boost gold prices. The simplest example of a global macro trade idea is a bet on currencies.Ĭurrencies are affected by many factors, including interest rates set by central banks, trade policy, economic growth, inflation, and geopolitical events. Global Macro Definition: Global macro is an investment strategy in which hedge funds aim to profit from broad market moves rather than from specific stocks or bonds they invest in currencies, commodities, futures, forwards, swaps, and more, and they analyze fiscal, monetary, trade, and geopolitical trends to make decisions.

#Macro trading professional#

On the other hand, global macro might be the best strategy if you have a professional sales & trading background or you’ve been an economist, strategist, or policy researcher: What is Global Macro? In practice, very few hedge fund Portfolio Managers consistently achieve good results with this strategy over long periods.Īnd if you add in all the armchair “macro specialists” on online forums, the percentage of traders who perform well plummets. Some global macro trade ideas are so simple that the average person who knows nothing about finance could understand them.īut the execution is extremely difficult, which explains why some of the largest trading losses in history have come from macro-oriented ideas (“short nickel,” European index futures, oil and gas futures, etc.). For information on which legal entities offer investment banking products and services in each jurisdiction, please consult: For important disclosures in respect of securities transactions, please consult: and in respect of over-the-counter equity derivatives transactions, please consult: For additional regulatory disclosures, please consult: macro might be the most paradoxical hedge fund strategy.

JPMCB, JPMS LLC and JPMS plc are principal subsidiaries of JPMorgan Chase & Co. Morgan Securities plc (JPMS plc) where permitted and in other jurisdictions worldwide by other appropriately licensed global affiliates. Morgan Securities LLC (JPMS LLC), in EMEA by J.P. Securities products and services, including execution services, are offered in the United States by J.P. (JPMCB), including through its authorized branches and other global affiliates registered with local authorities as appropriate. Bank products and services, including certain lending, derivative and other commercial banking activities, are offered by JPMorgan Chase Bank N.A. and its subsidiaries and affiliates worldwide. Morgan is a marketing name for investment banking businesses of JPMorgan Chase & Co. Where this material is an “investment recommendation” as that term is defined in MAR visit: This material is subject to terms at: © 2022 JPMorgan Chase & Co. This material is a “solicitation” of derivatives business only as that term is used within CFTC Rule 1.71 and 23.605. Clients should contact their salespersons at, and execute transactions through, a J.P. Morgan entity appropriately licensed in the client’s home jurisdiction unless governing law permits otherwise. The products and/or services mentioned herein may not be suitable for your particular circumstances and may not be available in all jurisdictions or to all clients. Any unauthorized use is strictly prohibited. This material is provided on a confidential basis and may not be reproduced, redistributed or transmitted, in whole or in part, without the prior written consent of J.P.

Morgan disclaims any responsibility or liability whatsoever for the quality, accuracy or completeness of the information herein, and for any reliance on, or use of this material in any way. Please consult your own advisors regarding legal, tax, accounting or any other aspects including suitability implications for your particular circumstances. It is not intended as research, a recommendation, advice, offer or solicitation to buy or sell any financial product or service, or to be used in any way for evaluating the merits of participating in any transaction. This material is provided for informational purposes only and is subject to change without notice. It is not a research report and is not intended as such. Morgan Sales and Trading personnel and is not the product of J.P. FOR INSTITUTIONAL & PROFESSIONAL CLIENTS ONLY – NOT INTENDED FOR RETAIL CUSTOMER USE