Tag: Volatility
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The Yen Carry Trade Unwind: How August 5, 2024 Shook Global Markets
The Nikkei crashes 12.4% in its worst day since 1987 as a 15-basis-point BoJ rate hike triggers the violent unwinding of an estimated $250-500 billion in yen carry trade positions. A masterclass in how hidden leverage and crowded trades can destabilise global markets.
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Crypto’s Flash Crash: Bitcoin Drops 50% in Two Months
Khan Capital | May 2021 Key Takeaways Part of: Crypto & Digital Assets – Khan Capital’s hub on crypto and digital assets. Bitcoin has fallen from its all-time high of approximately $64,000, set on 14 April, to below $35,000 this week: a decline of nearly 50% in barely five weeks. Over $1 trillion in value…
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Archegos Capital Collapse: The $30 Billion Margin Call
Khan Capital | March 2021 Key Takeaways Part of: Market Crises & Crashes – Khan Capital’s hub on market crashes and financial history. On Friday 26 March 2021, banks began liquidating billions of dollars’ worth of stocks after a single client, Archegos Capital Management, failed to meet margin calls on its leveraged equity positions. By…
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GameStop and the Meme Stock Revolution: Reddit vs. Wall Street
A Reddit forum, a dying retailer, and 140% short interest collide in the most extraordinary retail-versus-institutional market confrontation in modern history. How options mechanics, social media coordination, and commission-free trading reshaped the balance of power.
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COVID-19: The Fastest Bear Market in History
The S&P 500 falls 34% in 23 trading days, the fastest bear market in US history. Four circuit breakers, record VIX, Treasury market dysfunction, and an unprecedented policy response that will define the decade ahead.
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The VIX Spike Explained: How the Volpocalypse Shattered Market Calm
On 5 February 2018, the CBOE Volatility Index (VIX) recorded its largest single-day point increase in history, surging from approximately 17 to above 37 intraday. The move exposed deep structural fragilities beneath the surface of one of the most tranquil periods in equity market history. The event destroyed several inverse volatility products, most notably the…