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BGonline.org Forums
Hedging Controversy
Posted By: Tom Keith In Response To: Hedging Controversy (MFIC)
Date: Saturday, 15 October 2011, at 8:37 p.m.
I believe that the hedge amount (let's say X% of $1500) is NOT due at this point. Rather, I'd make the payout dependent on the B's actually getting a cash prize ...
That sounds like a reasonable solution. The standard understanding is that the "loser" of a hedge doesn't have to pay until he himself has been paid.
I would not make the amount payable dependent on future hedges. If B cashes in the tournament, he should pay X% of the money awarded by the tournament. (If B wants to hedge with his portion of those winnings, that's up to him.)
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