To offset any further increase in the euro we could put on a hedge. A hedge here would do three things. 1. A hedge would offset your losses on the euro. 2. A hedge would keep you in the game if it allows you to keep the positions you have. At some point very soon the euro and dollar will change directions and when that happens we could turn off the hedge. 3. A hedge would lower your stress
A hedge would simply be buying one December euro position for every euro short position you own. If the euro continues to climb and the dollar drop, your gain in the December euro would offset most of the margin calls you are having on the September euro.
These euro shorts will work but if you get taken out today and Friday the market reverses, my experience is that only about a fourth of the positions we have on right now will put the positions back on. Again, this should be a very good trade.
One hang up for many of you will be that you have an additional margin to fund. If you are near your limit now you might need to liquidate half your euro shorts to buy euros.
Let me know what you would have me do ASAP! We could activate the hedge if the euro moves to 1.19 or higher.
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