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Short Position - Rights Issue


TraderJason

Question

I am confused about rights issue whilst being.

I understand you can buy back the rights.

Is the buy back just crystallizing the loss from the short position?

If your position is negative at the time of rights issue are you usually at a loss when the rights issue position is opened?

Can you keep the short rights open and hedge with a long.

I had a position short with Tui at 263 for £9 per point when rights were announced.

2300 loss with the Rights Issue. Bottom line: How could I have got out of the loss?

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