How does the TACO trade work?
This approach has led to a recurring trading strategy on Wall Street:
1Trump announces punitive tariffs — markets tumble.
2Investors buy the dip, anticipating Trump will backtrack.
3Trump delays, reduces, or withdraws the tariffs — markets recover.
Traders who play this cycle profit from the bounce-back, thus giving rise to the ‘TACO trade’.
We plan to launch a few markets on @HyperliquidX once HIP-3 is live with help of some friends
The CEX listing process is deeply broken and we must find new pathways to liquidity that are fair to all participants
Permisionless tech enables us to opt out of broken systems