NST 1.00% $15.84 northern star resources ltd

Don't think it's a matter of whether they're good for it in the...

  1. 538 Posts.
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    Don't think it's a matter of whether they're good for it in the future. Assuming the hedge is achieved through selling a short position, as the price increases a short position moves further out of the money, if it moves far enough the seller may face a margin call. As I understand it this is what happened with nickel. With the price moving so quickly, margin calls were made which then led to companies trying to close out short positions which then led to a short squeeze.
 
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