How do you plan to achieve your target portfolio

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Reference no: EM133668242

Market View Report

Before the trading session, students need to do research and form their market view. During the trading session, students are required to trade based on market data and their market view.

In the market view reports (1000 words), you need to state:
- your market view for each currency pair, i.e., which currencies appreciate and
which depreciates, and why, assuming your investment horizon is one month;

- what your target portfolio is - the portfolio allocation that you want to achieve by trading these currencies;

- what your trading strategies are - how do you plan to achieve your target portfolio? (Your target portfolio and proposed trading strategies should be consistent with your market view.)

TRADING INSTRUCTIONS FOR MARKET VIEW REORT:

Imagine that you are a front office FX trader. You are given an initial balance of$USD 100,000,000 and 4 pairs of currencies to trade AUD/USD, USD/JPY,EUR/USD and GBP/USD. Students will start with an equal weighted portfolio with $20 million USD in each currency. Minimum size of each transaction is 1,000,000 units of the relevant currency (100,000,000 for JPY) and 10,000,000 units maximum per transaction (1,000,000,000 for JPY) [ Short selling is not allowed ]

Structure of the Market View Report:

The market view report should include the following parts:

1. An executive summary providing a thorough overview of your report

2. Market view for the 4 pairs of currencies AUD/USD, USD/JPY, EUR/USD and GBP/USD

In this section, you should outline and explain your market view for each of the four pair ofcurrencies, respectively. You should assume your investment horizon is 1 month. Your market viewneeds to be justified by your analysis of data, news and any relevant information that will affectexchange rates.

3. Target portfolio and proposed trading strategies

In this section, you should provide your target portfolio - the portfolio allocation that you want toachieve by trading these currencies. In addition, you should explain your trading strategies - how do you plan to achieve your target portfolio? Your target portfolio and proposed trading strategiesshould be consistent with your market view.

Referencing: Harvard

Reference no: EM133668242

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