LD Lossdog Research
symbol

HG

2 matching records.

Trade idea

HG Hedging

The speaker suggests that copper may offer more upside potential compared to other metals like silver, which are perceived as overbought. However, the speaker cautions that hedging with copper is not a guaranteed strategy and depends on the context of the trade. If the goal is to keep the position open for hedging purposes, copper could be considered, but if the trade can be exited, it's better to do so. The speaker also notes that the relationship between silver, gold, and copper as hedges is not well-defined and may not be reliable.

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StrategyHedging
Assetcommodity
Time horizonShort-term
Entry / triggerIf the trader is short silver and wants to hedge the position, buying copper contracts could be considered as a hedge.
Target / exitThe speaker suggests that copper has more room to the upside compared to other metals, but the exact target is not specified.
Invalidation / stopThe speaker warns that if the trade can be exited, it's better to do so, implying that the trade may be invalid if the market moves against the hedge.
SpeakerScott Sheridan
Risks
  • The effectiveness of copper as a hedge is uncertain
  • The market conditions are volatile and unpredictable
  • The speaker has no personal experience with copper trading
longcommoditylongHGshort-termhedging
medium confidenceVerify in video at 07:43 ↗
Q&A

Am I thinking like a reasonable person by buying copper contracts to hedge my short silver trade?

The speaker suggests that buying copper contracts as a hedge for a short silver trade may not be a reasonable strategy. The speaker warns that if the trade can be exited, it's better to do so, implying that the trade may be invalid if the market moves against the hedge. The speaker also notes that the relationship between silver, gold, and copper as hedges is not well-defined and may not be reliable.

View full notes
Actionable takeawayThe speaker advises against using copper as a hedge for a short silver trade unless the trade is kept open for hedging purposes. The speaker also warns that the effectiveness of copper as a hedge is uncertain.
HGhedging
medium confidenceVerify in video at 07:43 ↗