But across the five major petroleum contracts as a whole, which include NYMEX and ICE WTI, US gasoline, US heating oil, as well as Brent, the net long position
was cut by 3 million barrels.
There may be fundamental reasons for hedge funds' bullishness towards gas but the concentration of long positions
has become a source of downside price risk in the short term.
Now the reaction has produced its own counter-reaction, with the net long position
boosted by 26mn barrels in the week to September 13.
But the market has become "locked" into a classic bubble as all the hedge funds and money managers have tried to implement the same, bullish, view on prices at the same time by taking long positions
in WTI and Brent futures and options.
Enters into a short sale, an offsetting notional principal contract or forward or futures contract and subsequently acquires a long position
in the same property; or
The risk profile in the upper panel shows that a long position
in fixed rate bonds as a creditor or as owner of bonds has a negatively sloped risk profile with respect to interest rate changes.
Hedge funds cut their net long position
in crude futures and options by 72 million barrels to 574 million barrels in the week to November 1, according to an analysis of regulatory and exchange records.
Between the start of January and the end of April, hedge funds and other money managers almost tripled their net long position
in WTI and Brent futures and options from 234mn barrels to a record 663mn barrels.
S&P Pan Arab Shariah Balanced - Conservative Index - the Index takes a long position
in the S&P Pan Arab Composite Shari'ah Total Return Index with a 25 per cent weight, and a long psition in the Dow Jones Sukuk Total Return Index with a 75 per cent weight
If a commodity's price trend is positive, Direxion takes a long position
. If the trend is negative, the funds go "flat" in that commodity and hold cash.
SAR rules would dictate entering into a long position
when the oscillator crosses above 0, and reversing into a short position when the oscillator crosses below 0.
In a "short sale against the box," a taxpayer owns a long position
and borrows an equal amount of stock from his broker to sell.