Hedge funds take profit on vol trades with Trump win
FX volatility drops sharply as positions unwind; rates market sees mixed reaction
Hedge funds that bought foreign exchange options in a bet on increased volatility around the US presidential election have largely unwound their positions, sending vol levels sliding across several currency pairs.
Dealers say the extended period of market volatility they had expected failed to materialise after Donald Trump and the Republican Party’s resounding victory.
As a result, many hedge
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