4 ms·

the 6-8 days to cover is based on historical volume is my understanding. If volume spikes 10x in a day they cover much faster. Besides, this assumes 100% coveri

• pastrami_panda 6y ago
  This was exactly my thinking, why wouldn't they utilize these days of extreme volume trading to their advantage. It's their bread and butter, no?
  • nowherebeen 6y ago
    Exactly. Hedge funds love volatility. They aren’t mutual funds. Hedge funds typically make the most and lose the most money during these times because they can take any side of the position as they see fit. People that invest in hedge funds know this.
    • beagle3 6y ago
      They are not magicians. They are on the losing side of what turned out to be a few billions dollar bet (real money. Not notional). They usually profit from switching side quickly or making informed bets you can’t easily make - like shorting stocks. Except, they dug too deep this time. We’re seeing another LTCM meltdown in process, albeit smaller and so far more contained.
  • TuringNYC 6y ago
    Because while volume went up the price did also, so it’s costing them 10x to 20x to cover.