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Hedge funds can short too, why the cold feet all of a sudden? My guess is he's shorting the markets or couldn't raise the capital after all. Or ultimately thou
by dahdum 9y ago
Hedge funds can short too, why the cold feet all of a sudden?
My guess is he's shorting the markets or couldn't raise the capital after all. Or ultimately thought the risk to his reputation if his fund failed was too high.
- bob_theslob646 9y agoIt's different shorting when you have to put up so much capital to short all at once. To give you an idea, on future exchanges in the United States, you have to put up a 90% maintenance margin, compared to other commodities that allow you to maintain 40%. Options not being written is another factor. >Getting cold feet ? I bet it's not easy raising money when the asset you are trading falls 40% in two days.
- dahdum 9y agoIf he knew it would and cashed in on that capital would come quickly. From the article I see part of it was regulatory burden and propriety of trading his own crypto while maintaining the fund. That makes sense but nothing to do with the current drop, good excuse though.
- deleted 9y ago[deleted]