Peg trading: the Hong Kong dollar and other pegs

Pegged currencies trade in narrow bands by design — until the peg breaks, and then the move is historic. Trading pegs is a study in asymmetric risk: small steady profits, rare catastrophic losses.

Have you traded one?

• the peg and your strategy
• how you weighed the break risk
• what you learned from a peg break, if you've seen one

The Hong Kong dollar peg guide explains the mechanics.