InvestorsHub Logo
Followers 8
Posts 782
Boards Moderated 0
Alias Born 04/10/2014

Re: Nebuchadnezzar post# 22623

Wednesday, 04/07/2021 5:30:31 PM

Wednesday, April 07, 2021 5:30:31 PM

Post# of 138962
The DOMINOE EFFECT -

Think that a hedge fund gets called on margin on one shorted stock; scenario suggests they come up with cash; if not sell stocks they are long at, if..not close out short position (perhaps broker does it)...this action causes price rise .....hence further margin calls, maybe other hedge fund over leveragedd gets margin called......

.might lead to short covering to close shorts in other stocks, hence further price rise of shorted stock(s); in turn could cause margin calls to other hedge funds who are not as over-leveraged as the first.

This could go on and on, like a chain reaction, ......until the total system is cleaned out.

I think this might be considered a great potential transfer of wealth....

HB
Volume:
Day Range:
Bid:
Ask:
Last Trade Time:
Total Trades:
  • 1D
  • 1M
  • 3M
  • 6M
  • 1Y
  • 5Y
Recent AMC News