Can you short an entire Country?

[Acorn1]

As per title really.

[egomeister]

Does it have its own currency Mr Soros?

[Acorn1]

Of course.

[flight147z]

Then just short the currency

[Acorn1]

Is there not more to it than that?

[jonathan_roberts]

If you have to ask these questions it’s probably not the right game to get into.

[FreeLitres]

Which country did you have in mind?

[sayerbloke]

Does the country have a recognised index you could short?

[thr32]

sayerbloke said:

Does the country have a recognised index you could short?

Shorting the equity market is not necessarily a perfect answer here - eg in the case of the UK, the FTSE is very substantially made up of overseas, non-GBP revenue, so GBP depreciation could be positive for the index. On the day following the EU referendum, the FTSE was -3%, but -10% in USD terms.

TH

[NowWatchThisDrive]

jonathan_roberts said:

If you have to ask these questions it’s probably not the right game to get into.

This is the answer

[Peterpetrole]

jonathan_roberts said:

If you have to ask these questions it’s probably not the right game to get into.

"Margin call Gentlemen"

"You know perfectly well we don't have 349 billion in cash!"

[Richard-D]

Peterpetrole said:

"Margin call Gentlemen"

"You know perfectly well we don't have 349 billion in cash!"

Depends on the country. If you choose Wales you can probably raise the capital by digging down the back of a pub sofa.

[z4RRSchris]

short govvy bonds / gilts, loads of products out there for it, or Cable.

[DonkeyApple]

Short govt debt & currency or go long usd.

You wouldn't use equities in a developed nation as those companies aren't necessarily exposed to the domestic economy.

[fido]

Sovereign CDS market.