mining companies pulling off their hedges
sinin1
Posts: 7,500 ✭
I heard on television a CEO of a mining company say they are pulling off their hedges and going to go strickly cash sales
as metal prices are good now
How big of a short term impact will this have on the market?
Say a mining company had 50% of their future projected production hedged
whick could be a couple hundred contracts for every strike for a couple years
that short will become a long to close contract
open interest will drop but another buy order going through (as well as a seller no longer selling)
as metal prices are good now
How big of a short term impact will this have on the market?
Say a mining company had 50% of their future projected production hedged
whick could be a couple hundred contracts for every strike for a couple years
that short will become a long to close contract
open interest will drop but another buy order going through (as well as a seller no longer selling)
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