 subsidiary of the German conglomerate MG - reported a loss of $1.5    a 10-year period. As the company was exposed to a rise in oil prices,    quarter of 1993, MGRM held extremely large positions in both forwards and futures. When oil prices moved against it, the futures positions  


       was not able to liquidate enough gold reserves in time to meet its large margin call.


 clients are reliant on not only the operational  to their account on time, but also that they will not default in entirety, jeopardising their money.


While hedging with derivatives can reduce or  strategy and these could have severe negative impacts if they are not assessed and managed properly.


Mickael Soussant  


15 | ADMISI - The Ghost In The Machine | May/June 2019


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