Currency Strategy: A Practitioner's Guide to Currency Trading, Hedging and Forecasting [Hardcover]

Callum Henderson (Author)

Book Description

ISBN-10: 0470846844 | ISBN-13: 978-0470846841 | Publication Date: November 11, 2002 | Edition: 1

Expert advice and timely techniques for surviving and thriving within currency markets
Rapid movements in currency markets have been a common occurrence in recent years, often to the detriment of traders and investors. The ability to manage these fluctuations is essential for safe and successful investment in these markets. Currency Strategy develops new techniques and explains classic tools available for predicting, managing, and optimizing fluctuations in the currency markets. Author Callum Henderson shows readers how traditional macroeconomic theory has repeatedly failed in the face of practical experience in these markets and develops a new approach based on experience. He draws on the technical expertise of his bank to develop mathematical models to assist in the prediction of crises and gives practical advice on how to use these and other tools successfully.

Editorial Reviews

From the Inside Flap

Rapid movements in currency markets have been a common feature of recent years, often to the detriment of traders and investors. The ability to predict the collapse of a currency is essential to safe and successful investment in these markets. Ultimately in such a crisis there are no firm rules that can help the practitioner, who needs to rely on quick wits and a masterly command of all the tools at their disposal.

Currency Strategy outlines the key tools available to practitioners in the field, their benefits and limitations, and discusses fundamental analysis, technical analysis, behavioural finance, flows and the authors own modelling techniques for the prediction of a currency crisis.

From the Back Cover

John Maynard Keynes reference to the animal spirits, that elemental force which drives financial markets in herd-like fashion, was applied to the stock market. However, he might as well have been referring to the currency market, for the term sums up no other more perfectly. A market that is volatile and unpredictable, a market that epitomises such a concept as the animal spirits, surely requires a very specific discipline by which to study it.

This is precisely what Callum Henderson does in this eminently practical and readable book. He provides an analytical framework for currency analysis and forecasting, combining long-term economic valuation models with market-based valuation techniques to produce a more accurate and user-friendly analytical tool for the currency market practitioners themselves.

Written by a market practitioner for fellow professionals whose job is to turn the theory into practice and actually execute the currency market transaction, the book is split into three parts:
* Theory and practice
* Regimes and crises
* The real world of the currency market practitioner.

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Product Details

• Hardcover: 234 pages
• Publisher: Wiley; 1 edition (November 11, 2002)
• Language: English
• ISBN-10: 0470846844
• ISBN-13: 978-0470846841
• Product Dimensions: 9.5 x 7.3 x 0.8 inches
• Shipping Weight: 1.4 pounds
• Average Customer Review: 3.6 out of 5 stars  See all reviews (7 customer reviews)
• Amazon Best Sellers Rank: #2,087,412 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

30 of 32 people found the following review helpful:

3.0 out of 5 stars Good as a textbook, but bad as a trader's guide, January 26, 2005

By 

ServantofGod - See all my reviews

This review is from: Currency Strategy: A Practitioner's Guide to Currency Trading, Hedging and Forecasting (Hardcover)

As a professional trader who deals with the ups and downs of the FX market from Monday to Friday for years, particularly with the extreme volatility of USD from last October till now, I am obliged to comment that the book is of little practical/predictive use. Unless you really wanna study academic theories about FX like different kinds of exchange rate regime or exchange rate model (which seldom held themselves), or get reasons to hedge your exposure "completely" for your company's or your own investment portfolio, please give this book a pass.

14 of 16 people found the following review helpful:

4.0 out of 5 stars Very Informative - good for novice traders, January 30, 2004

By 

"jay_h02" (New York, NY) - See all my reviews

This review is from: Currency Strategy: A Practitioner's Guide to Currency Trading, Hedging and Forecasting (Hardcover)

There is a lot of material in this book that traders should know. Some are minor details, but these are the same details that can determine whether a trade will be profitable. It is divided into three parts towards the end to suit three types of investors: (1) corporate, (2) institutional, and (3) speculator. Obviously not all three will suit you, but you can learn some things from all of them. Take a look.

3 of 3 people found the following review helpful:

3.0 out of 5 stars More theoretical than a "Wiley Trading" imprint- but just barely, February 23, 2008

By 

Susan Dunn "susan dunn" (Chicago, IL) - See all my reviews

This review is from: Currency Strategy: The Practitioner's Guide to Currency Investing, Hedging and Forecasting (The Wiley Finance Series) (Hardcover)

I was looking for a book on foreign currency strategy well suited for readers with MBAs or degrees in economics - people not afraid to delve into the theory, but not necessarily well-versed in this particular topic. The "Wiley Finance" imprint usually does a good job of exactly this - a thorough serious treatment of a subject, but without differential equations. However, this book was too basic. It breezed by the theory at 10,000 feet with few references to academic papers/studies that could take you farther. Also, the book was poorly edited (shame -it is a 2nd edition) with repetition, rambling and grammatical errors. Callum Henderson clearly knows his subject, but demands too little of his readers and was not helped by his editors. That said, there are few alternatives on the subject that aren't trading books replete with technical analysis or thick academic tomes that are aimed at shaping public policy rather than informing market participants. So read the book and get what you can out of it.