Do little guys hedges/margin requiremnts

[Fraser921]

Do little guys have to put up cash as their hedges go underwater.

Yes , a larger company has a huge credit line to support it but I'm talking little guys with large hedges like GDP. They really need an equity raise here

[dan_s]

Keep in mind that they do sell their physical production at market prices. So, as physical prices go up they have more cash to settle their hedges that are under water. They can have a short-term cash flow issue, which is why the bank credit lines need to have some "dry powder".