Hedge Funds Raise Their Short Positions Against the Euro

in New Gold Spot Gold by admin — March 3, 2010 10:00 am | no comments

Filed under: Market Matters , Financial Crisis Remember just a few short months ago when the financial markets were in a tailspin? Day after day, selling came in to the market. Short selling accelerated. Then came “naked short selling.” The markets ended up being chaotic and the government had to step in. With frantic short selling going on, the SEC banned naked short sales of a few select banks for a few days. Now we fast forward to Europe. The same scenario is being played out against the euro. Hedge funds have increased their short positions . Traders are buying credit default swaps (CDSs) supposedly as protection against a Greek default. But very much like the U.S. meltdown, traders are also buying naked CDSs. Traders holding naked CDSs do not have an underlying position that they are hedging. Continue reading Hedge Funds Raise Their Short Positions Against the Euro Hedge Funds Raise Their Short Positions Against the Euro originally appeared on BloggingStocks on Wed, 03 Mar 2010 12:00:00 EST. Please see our terms for use of feeds . Permalink �|� Email this �|� Comments