Let's say terrorists set off a nuke in NYC. You are carrying a full load of longs when the market closes. You cannot exit. How do you hedge those positions?
You buy as many shorts as you can in whatever foreign market is open at the time. This will give you a rough hedge. After Sept 11 the European and Asian markets fell almost as far as the US market in percentage terms. Runningbear
If you're 'hedging' after the fact, you'll still lose plenty. If you hedge before the fact, you'll pay through the nose over time for the insurance. If you're living in NY at the time, you won't care about your positions for long anyhow.
I've wondered about this too. Since IB is located in nyc, does anyone know if they have a backup system outside the city?
<I've wondered about this too. Since IB is located in nyc, does anyone know if they have a backup system outside the city?> thats funny ... what makes you think IB is in nyc ?????