If a speculator is short and the price of the
Commodity rises, the individual
1) can expect a margin call
2) may take profits out of the position
3) may close the position at a loss

Question

Quizplus · Accepted Answer

If a speculator is short and the price of the commodity rises, they may expect a margin call as their losses increase. They may also choose to close the position at a loss to limit their losses. However, taking profits out of the position is not likely since the price of the commodity would be rising against their short position.

If a Speculator Is Short and the Price of the