Thoughts on managing political event risk in $MXN exposure?

asked by u/andrea94 · 7d · 1 answers

I'm looking at some carry plays in LatAm, specifically $MXN crosses, but the upcoming election cycle has me a bit on edge. I understand the general concept of reducing exposure or tightening stops around these periods, but I'm curious how seasoned participants here factor in the degree of political uncertainty. Do you tend to de-risk completely, or just size down and widen your stops, perhaps focusing on higher-conviction technical levels? It's hard to quantify that 'political noise' factor.

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  • u/petralukic· 1 pts· 7d

    It's a tough one, especially with LatAm. I tend to size down significantly and use a very wide stop, almost as a 'bail-out' if things go completely sideways, rather than a precision exit. Often, the post-election volatility creates new, clearer entry points.

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