You know perfectly well we dont have 394 million in cash!
Posted on 10/04/2021 5:37:25 PM PDT by dynachrome
The world's top commodity trading houses are being told by brokers and exchanges to deposit hundreds of millions of dollars in extra funds to cover their exposure to soaring gas prices, seven sources with direct knowledge of the matter told Reuters.
Glencore, Gunvor, Trafigura and Vitol are among the commodity merchants facing what are known as margin calls on their financial positions in natural gas markets, the sources said.
The calls are forcing the traders to tie up more capital. Some, particularly smaller firms, are having to increase borrowing, leaving them with less cash to trade with and potentially hurting their profits, the sources said.
The sources, who include company officials, brokers and bankers, declined to be named due to the sensitivity of the matter.
(Excerpt) Read more at reuters.com ...
I would think the headline would only apply to the shorts.
Jesse Livermore supposedly said this about shorting: “He who sells what isn’t his’n must buy it back or go to prison.”
Yeah. If you were long, you should be doing pretty good.
The origin of the saying is unknown, but by 1898 it was attributed to financier Daniel Drew (1797-1879).
Thanks!
Don’t blame me. I voted for Trump.
Margin is per contract, long or short.
That means selling off other assets to raise capital. Up goes the Vix.
Long LNG and ET, doing pretty good.
Or do like that guy a few years ago in Europe that tried to ruin (Porsche?) by neddik shorting.
He stepped in front of a train.
You know perfectly well we dont have 394 million in cash!
Who would short oil in this trainwreck? Idiots deserve what they get.
You owe the bank $1 million you got a problem, you owe the bank $100 million the bank has a problem! look out below! Thanks F Biden
I’ve been surprised that gasoline prices have stayed this low while oil has been rising fast lately.
Gas has some catching up to do. Plus, winter blends are coming, whoopee.
Demonrats will gladly pay $50/gallon in exchange for a mean tweet free world
If only governments could print gas. Then they could manipulate gas prices like they do precious metals, by borrowing from themselves to cover their short positions.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.