Re:Bill Hwang of Archegos Capital lost $20B in two days
by whoknowswhat11 on Wednesday May 12, 2021 @01:31PM
(#27132908)
The house wins in lots of cases because of capital differences. You often end up in a forced sell LOW situation with leverage. Ie, market swings up and down 10%, then up and down 20%, at some point on a down swing if you are levered up a lot house calls you up for an extra $5B which you don't have, so they sell everything out from under you. So you can end up selling low not high in these models.
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