Tag: should i

Should I green up?

People often ask me if it is worth greening, or redding, up; hedging your profit so you win what ever the result. In a word yes, but a longer description follows.

First off the market is very efficient, so in essence you could argue that it makes no difference. If you hedge you need to place another lay order. The hedge value is calculated by laying off the profit at the current lay price, thereby dividing your profit by the …