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Butterflies Cause Cascading Margin Calls

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"[This] second blog is devoted to the phenomenon of the butterfly effect of cascading margin calls, which in my view is one of the most important forces driving market prices that few people talk about," writes the OlsenBlog "Cascading margin calls come about because a butterfly; be it  a random news event or large market order, triggers a price spike, which leads to a margin call with one trader somewhere in the world who then has to liquidate a largish position enough to fuel a continuation of the price move triggering further margin calls."
SOURCE:   OlsenBlog