When do we say a currency is actively or passively managed? Passive : When fully hedged, and when managers decisions are not based on currency expectation Active: When currency is not hedged Am I right? I think I haven’t understood this properly. Amy inputs please
passive, when we dont seek return on it and hedge all risk (expected risk)
active, when we seek active return and do not hedge
sorry double post
I disagree. A manager who hedge her position is taking an active positision ( ie she is doing something.)
Active when your currency positions differ from benchmark.