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To: Enigma who wrote (35984)6/27/1999 2:52:00 PM
From: Alan Whirlwind  Read Replies (1) | Respond to of 116753
 
Perhaps shooting yourself in the foot is more accurate.



To: Enigma who wrote (35984)6/27/1999 6:24:00 PM
From: Claude Cormier  Read Replies (1) | Respond to of 116753
 
<<Alan - it's called 'hedging' - hedging involves a short sale and a subsequent covering purchase and a sale of the commodity into the spot market >>

Can you explain how hedging in the form of forward sales which until now has been the most popular form of hedging) is a short sale. I can't see it. A "gold carry" is a short sale but not a forward contract used as an hedge.