TD Securities has been forced to close its silver short position at a “theoretical loss” of $606,000 on Jan. 15 after the price hit its stop-loss of $93.15 per ounce.
Daniel Ghali, senior commodity strategist at TD Securities, had announced on Jan. 7 in its commodities portfolio update that the bank was entering a short position on silver at $78, anticipating it would fall to $40 an ounce as “silver’s devilish blow-off top comes to completion.” Ghali set a “stop-loss” at $93.15, meaning the bank’s position would automatically be sold when it hit that level in order to minimize losses.
