How to lose 20 Billion in 2 days

Discussion in 'Wall St. News' started by Pekelo, Apr 8, 2021.

  1. Is this story that incredible? The higher the leverage, the more the risk/return.
     
    #31     Apr 9, 2021
  2. maxinger

    maxinger


    high leverage ---> not a high risk if the mind is centered

    high negative emotion / high greed level ---> high risk!!

    low leverage ---> also high risk if the mind is off centered!
     
    #32     Apr 9, 2021
  3. Pekelo

    Pekelo

    Only by the size and the quickness of how fast it turned sour.
     
    #33     Apr 9, 2021
  4. Tell this to Mr Hwang ;)
     
    #34     Apr 9, 2021
  5. Why is this level of leverage is even allowed nowadays?
     
    #35     Apr 9, 2021
  6. Pekelo

    Pekelo

    Well, apparently he used a little trickery, by using different brokers so not one broker knew his full size. I am not sure if this is some kind of financial criminal offense or not, but he used more than he would have been allowed by just one broker.
     
    #36     Apr 9, 2021
    Master Pu likes this.
  7. maxinger

    maxinger

    I am sure he knows.

    humans are humans.
    at times, we are gullible, and can't resist the temptation.
     
    #37     Apr 9, 2021
    Master Pu likes this.
  8. jem

    jem

    I think there may be a massive echo from this...
    So many markets that I watch are maintenance trading right now.

    I sort of envision massive funds with their hands on the sell buttons as they wait for their prime brokers to tell them to deleverage. I envision the prime brokers trying to find ways to remove some of their exposure without causing a downward spiral.

    A few currencies (unwinds perhaps) and the index stock futures are the only things that may be an exception.


    Of course... I could be wrong and maybe this is options and pre earnings season related...

    But... when this quiet period breaks... it should be fun.
     
    #38     Apr 9, 2021
  9. RedSun

    RedSun

    Can you declare bankruptcy against IRS and some governments??

    I guess for the folks who can't pay IRS, they serve jail time?
     
    #39     Apr 9, 2021
  10. RedSun

    RedSun

    Probably not. He is allowed to keep his positions confidential. He delivered the margin banks originally demanded. It's banks' faults.
     
    #40     Apr 9, 2021
    murray t turtle likes this.