Bear Traps: Traders Believe The Dream Is Still Alive. It's Not Today
https://www.zerohedge.com/markets/bear-traps-...-not-today
#Market
#Liquidity
#Margin
#Call
#Hedge
#Fund
#Trade
Quote:There is NOTHING worse than having a liquid high vol hedge rip HIGHER vs. an illiquid asset. It´s a classic liquidity mismatch, the losses can be colossal and of course the risk manager will always walk over, forcing new hedges onto traders at the worst possible time, without fail. This is what took place in banks around the world from March 8-14th! Banks are levered, they cannot afford risk at a certain point, in their view, they MUST hedge even if it's at the absolute wrong time. As the WW3 threat receded over the last 6 days, we can see those hedges coming off in spectacular fashion. They´re jumping over the seats swinging on the chandeliers trying to get long and get out of their index hedges."
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What happens is that the risk management team walks over to the trading desk and tells them they need to hedge and asks the traders what they can hedge with; the traders always come up with the most liquid thing they can think of because they want to be able to lift the hedges once given permission to so do; the risk management team never asks about the liquidity of the hedge and if the liquidity matches because their whole view is the firm is stuck in something liquid so the last thing they want to see is another NON liquid line item. In effect, neither the traders nor the risk team has a decent choice this discussion ABOVE meant NOTHING 5 months ago now it means everything we suspect.
https://www.zerohedge.com/markets/bear-traps-...-not-today
#Market
#Liquidity
#Margin
#Call
#Hedge
#Fund
#Trade
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"The Preamble
We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America."
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"I solemnly swear to support and defend the Constitution of the United States of America"
The Flag
"I pledge allegiance to the flag of the United States of America, and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all."
Quote:If the broker-dealer fails to deliver for 13 days, the regulation imposes a “close out” duty to purchase and deliver securities “of like kind and quantity.”
https://www.bloomberg.com/opinion/articles/20...ify%20wall
https://www.scotusblog.com/case-files/cases/m...v-manning/
