oussama94
05-28-2017, 19:43
The Quantum hedge fund manager essentially wanted to bet that the pound
would depreciate because the United Kingdom would either devalue the
pound or leave the ERM. Thanks to the progressive removal of ******* controls
during the EMS years, international investors at the time had more
freedom than ever to take advantage of perceived disequilibriums, so Soros
established short positions in pounds and long positions in marks by borrowing
pounds and investing in mark-denominated assets. He also made
great use of options and futures. In all, his positions accounted for a gargantuan
$10 billion. Soros was not the only one; many other investors soon followed
suit. Everyone was selling pounds, placing tremendous downward
pressure on the currency
would depreciate because the United Kingdom would either devalue the
pound or leave the ERM. Thanks to the progressive removal of ******* controls
during the EMS years, international investors at the time had more
freedom than ever to take advantage of perceived disequilibriums, so Soros
established short positions in pounds and long positions in marks by borrowing
pounds and investing in mark-denominated assets. He also made
great use of options and futures. In all, his positions accounted for a gargantuan
$10 billion. Soros was not the only one; many other investors soon followed
suit. Everyone was selling pounds, placing tremendous downward
pressure on the currency