Position Limits

Discussion in 'Markets & Economies' started by fiatphoney, Dec 24, 2010.

  1. fiatphoney

    fiatphoney New Member

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  2. Silverthorn

    Silverthorn Well-Known Member

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    Interesting comment there. 35% of the silver market held by one trader. didn't specify long or short though.
     
  3. Willow

    Willow New Member

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    he also did not say if they were just looking at limiting long or short positions or both? It would make a large difference if they limited only one side of the trade and not both.
     
  4. benjamind2010

    benjamind2010 New Member

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    Well, they should be limiting naked shorts and naked longs. The naked part of the trade position is the part that matters most in this context as they do not have the collateral to cover those positions and therefore they should be heavily limited. Not just on shorts, although naked shorts present a far more serious problem than naked longs all else being equal.
     

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