mf global investors/clients, page-4

  1. 9,485 Posts.
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    Rebel1 how can increasing margins cause the market to go up if net long and up if net short ?

    I would of thought an increase in margins for those with bad posi's would mean a closing of the posi . If the majority were net short they'd have to buy back causing an increase ?
    If net long surely a decrease although it is all double dutch as most providers hedge so net sum is 0 .

    What sucks with MF is they were using the segregated acct funds to hedge against those who took out a posi . So anyone who opened a long bhp were also financing MF to take out an opposing posi which they may of lost on so the segregated acct is stuffed .
 
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