is there any way to hedge against a falling preferred stock prices for the purpose of protecting against a margin call? standard margin is of course at 50%. Would it be better to hedge at the call level or at a level higher than that?
a couple of notes from previous postings. someone mentioned that it is size rather then the number. i believe there is some regulation as to how large your position can be so i would assume that with an extremely liquid stock there would be a few players who would push that limit (of course they...
adding to my statement above here is my point (and this is a real example I saw a few nights ago while observing a stock and its respective future afterhours):
Note: my biggest assumption is that the futures listed on onechicago do not trade after hours.
to keep things simple let's say stock...
my idea is this: hedge funds and institutions all have computer programs that kick in as soon as an arbitrage opportunity occurs. With the world "globalizing" the investor "universe" is expanding too. Years ago I am sure inv. banks and institutions probably knew all the players in the market...