If I have issued a selling rating on USD, can I buy USD because I need to go to U.S. for honeymoon nexy month?
Nope. Not financial distress.
Though your spouse may disagree…
It all depends on if you purposely manipulated the market here for your honeymoon, and you must avoid COI’s by disclosing them. If you drove the price down then that would be the issue here. I would err on the side of caution with this transaction because duty to your employer would most likely dictate you reverse your rating to buy if you think that the economics are justified. This would typically be something that you would have to them disseminate to clients and wait for all of them to act on the change (“acceptable timeframe”) before acting on it yourself, giving you very little time to profit off of the trade.
If it’s just because you need to currency in your travels that’s something else entirely, of course you can because it wouldnt be a material amount and you’re not buying to profit
my understand of ethics with regards to this anyways
But it’s just fx translation. I will not get additional cash if I buy or sell it. Why it’s relevent to financial distress?
my take on this would be that you couldn’t go long a USD position, however it seems like your’e asking if you can go exchange EUR for USD at a currency exchange kiosk at the airport type of situtation. which in that case I would have to assume it wouldn’t matter.
Ha, I didn’t realize this was an fx position. I’d assume it’s fine so long as you had a reasonable basis for the recommendation. Think the guidelines are really for companies and situations where you can affect the integrity of the capital markets. Try as you might, you aren’t going to push around the fx rate.
yes but I still don’t believe if you could build a long futures position against the recomendation.
Thanks. I think fx spot transcation is free.