You can always think of it as hedging your long so that should the price tank short term, you are well protected. If it never goes back to your short level than you can just close out both position with the locked in cap gain. If price then reverse and get to your hedge level you simply remove the hedge. The risks for such a hedge is when price moves back to your hedge level and a trading halt with a massive +ve news and you gap into an immediate loss. There is no such thing as a riskless strategy.
Gold price holding at $1550 AUD, page-26
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Last
$15.93 |
Change
0.130(0.82%) |
Mkt cap ! $18.31B | |||
| Open | High | Low | Value | Volume |
| $15.85 | $15.98 | $15.83 | $12.61M | 793.7K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 32 | 3683 | $15.92 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $15.93 | 5272 | 13 |
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| Last trade - 13.07pm 10/10/2024 (20 minute delay) ? |
| NST (ASX) Chart |