Currency traders, confident that interest rates would not rise while inflation hovers at only 1%, bet against the Canadian dollar and drove it to a series of record lows in July.
The cash deal is a sign Santander is confident despite the concerns among bond traders about state finances in several European economies, including Spain, Greece and Portugal.
And when margin requirements drop, the traders pile into their oil speculations confident that they can borrow enough to limit their downside while boosting their upside opportunity.