Crypto Crash: Investors Who Borrowed Billions Against $BTC Face Margin Calls!
If you thought crypto hedged economic troubles, think again! Investors are in trouble as $BTC plummets.
#CryptoCollapse #MarginCalls #BitcoinDownturn

http://zip1.io/FqAuva

...As usual, it's a sumptuous buffet for the rich and under the buffet table scraps and strict enforcement of #MarginCalls for the rest of us.

#CBOE must be made to reconsider its new, stupid, quasi-criminal rules.

#margincalls

Tariff-induced volatility caused spike in derivative-related margin calls, data shows (Reuters) -The value of derivative-related margin calls at hedge funds and other market participants nearly tripled after the Trump administration announced larger-than-expected U.S. tariffs this month, before declining after a 90-day pause, according to OSTTRA, which provides post-trade services. Data showed the total value of those calls rose by 180% from April 2-10, placing significant liquidity stress on investors, and raising the number of disputes between trading parties by 25%, it said. Margin call values have now returned to pre-tariff levels, said OSTTRA, which KKR said this month it would buy from S&P Global and CME Group (NASDAQ:CME). The demand for margin calls increased 35%, much of which stemmed from variation margin, or additional collateral investors must pay to reflect the change in market value of their position to prevent them from defaulting on a trade, OSTTRA said. OSTTRA, which runs a platform that reconciles more than 90% of bilateral derivatives globally, collects data by tracking post-trade processes, focusing on margin calls, collateral movements, and disputes across global financial markets. The margin calls data is drawn primarily from the derivatives market, specifically focusing on exchange-traded derivatives and cleared repurchase agreement trades. Hedge funds typically use margin accounts to borrow cash from prime brokers to trade. To show how heightened volatility resulting from tariff policies has been costly for market participants, OSTTRA said a hedge fund managing 100 margin calls per day averaging $5 million per call would normally face $500 million in daily collateral flows. But the recent volatility meant that fund suddenly had an additional $900 million in collateral demands, bringing its total daily margin obligations to $1.4 billion, much of which may require funding in cash, it added. The margin call demand was seen across markets, according to OSTTRA, including equities, rates, foreign exchange, commodities as well as credit derivatives and repurchase agreements. "The frequency and size of margin calls did go up during this episode," said Ted Post, head of Prime Sales Americas at BNP Paribas (OTC:BNPQY). "The amount of margin calls were elevated and that’s certainly a sign of stress in markets, but hedge funds managed well through the event." Post added the risk was mitigated because many equity derivatives desks on Wall Street were positioned and hedged for this, as were their clients.

Click Subscribe #StockMarket #Investing #FinanceNews #Derivatives #MarginCalls

Yep. Join the #TeslaTakedown protests against this #Nazi asshole. 📉 creates #MarginCalls and limits his ability to do damage to our democracy. #resist

Boycott Tesla. Stop buying #Hoaxwagon #Swasticars and #Wankpanzers. Sell your #DePlorean.

You can still buy an EV. There are plenty of options now.

The twin stock/bond #selloff seems to have had many triggers, including the escalating US-#China #tariff battle, fears that traders' #margincalls in risky bets were leading to liquidation of safe assets ... , chart @reutersmiked.bsky.social www.reuters.com/markets/us/g...

Investeerders, fondsen etc rennen naar de uitgang — aandelen, staatsobligaties of goud, iedereen verkoopt voor geld omdat iedereen die geld leende om mee te investeren nu harde munt wil in plaats van aandelen, schuldpapier of goud, waarvan de waarde daalt. #margincalls archive.ph/2025.04.09-1...

Hedge funds capitulate, investors brace for margin calls in market rout Some hedge funds say they are offloading all or most of their holdings of stocks as U.S. President Donald Trump's trade war wipes out trillions of dollars of market value and forces them to curtail trading using borrowed cash.

"The selloff on Wall Street has been vicious as investors that bet on U.S. exceptionalism and economic might stampede out of its markets." #trumptariffs #bearmarket #margincalls

Hedge funds capitulate, investors brace for margin calls in market rout HONG KONG/SHANGHAI (Reuters) -Some hedge funds say they are offloading all or most of their holdings of stocks as U.S. President Donald Trump's trade war wipes out trillions of dollars of market value...

Hedge funds capitulate, investors brace for margin calls in market rout

uk.finance.yahoo.com/news/hedge-f...

#MarginCalls #StockMarkets #tariffs #trade #supplychain #markets #rout #investment #growth #PrivateEquity

Hedge funds capitulate, investors brace for margin calls in market rout By Summer Zhen and Samuel Shen HONG KONG/SHANGHAI (Reuters) -Some hedge funds say they are offloading all or most of their holdings of stocks as U.S. President Donald Trump’s trade war wipes out trillions of dollars of market value and forces them to curtail trading using borrowed cash. In the three trading days following Trump’s announcement of broad reciprocal tariffs on almost all countries, stock markets across the world have plummeted, and bonds have become both a haven and a bet on rate cuts by the Federal Reserve, turning on their head market assumptions before Trump took office. The selloff on Wall Street has been vicious as investors that bet on U.S. exceptionalism and economic might stampede out of its markets. The benchmark S&P 500 index fell 10.5% over two days and lost about $5 trillion in market value. China’s CSI300 blue-chip index fell more than 5% on Monday, while the pan-European STOXX index is down nearly 12% from its March 3 all-time closing high and in correction territory. William Xin, chairman of hedge fund Spring Mountain Pu Jiang Investment Management based in Shanghai, said he had liquidated all of his stock positions as the current geopolitical landscape is messy, and the risk of a global recession is rising. "The macro picture is getting very chaotic, and I cannot see the future clearly at all," said Xin, who sold his China and Hong Kong-listed shares last Thursday, ahead of a public holiday on Friday. Hedge funds that pursue a long-short equity strategy have been particularly hard-hit as market volatility metrics surged, brokers said. Analysts at J.P.Morgan estimated net leverage, which refers to borrowing, by hedge funds fell between 5% and 6% last week over the previous one, and that net hedge fund leverage could be around the lowest since late 2023. The bank said on Friday that volatility targeting portfolios had between $25 billion and $30 billion in equities to sell in the coming days, as they unwind positions to reduce risk. Levered exchange-traded funds (ETFs) had an additional $23 billion to sell to rebalance into Friday’s close, mostly tech stocks, it had said. Hedge funds typically use margin accounts in which they borrow cash from prime brokers to trade markets. When the value of holdings in an investor’s margin account falls below the broker’s required deposit, brokers can call on an investor to top up the account with cash or to sell those stocks or bonds. That rush for cash has seen even gold, typically a safe asset during crises, fall sharply since Trump’s "Liberation Day" tariffs were unveiled on April 2. "In market selloffs like this, panic and forced selling via margin calls can dominate for a while," said David Seif, chief economist for developed markets at Nomura in New York. "That’s not to say that it isn’t based on a very real negative event, which is these tariffs. But I think the ensuing selloff can take on a life of its own." FALLING KNIVES Bob Zhang, managing partner of Pine Street Capital, a Beijing-based hedge fund, said he has cut net exposure to Chinese stocks to 25% now from 100% in January. He has also added some hedges on the stock index to protect against downside risk. "The volatility in China might just be starting, as positions are very crowded, and some people are trying to catch a falling knife." Chinese investors are somewhat less likely to be affected by margin calls as the market had risen a lot earlier this year, yet the country is also the target of the biggest Trump tariffs. The Hong Kong tech sub-index is down more than 27% in a month and back to levels at the start of the year. China faces fresh U.S. tariffs of more than 50%, and it responded in kind on Friday by slapping extra levies on U.S. imports. "Too many uncertainties around, and everyone is de-grossing given the elevated market volatility" said a portfolio manager at a large U.S. multi-strategy fund, based in Hong Kong. "I think we are just in the middle of this selloff. This position unwinding usually will be sequentially affected from one hedge fund to another." Outstanding margin finance in China remains high, at 1.9 trillion yuan ($260 billion) as of April 3. In South Korea, where a ban on short-selling of shares was lifted just this month, data from the Korea Financial Investment Association (KOFIA) shows there were a total of 28 billion won ($19.15 million) worth of stock sales between April 1 and April 3 triggered by margin calls, compared with 11.5 billion for the whole of March, which was the biggest since September 2023. ($1 = 1,462.3100 won) ($1 = 7.3077 Chinese yuan renminbi)

Click Subscribe #HedgeFunds #Investing #MarketRout #Finance #MarginCalls

waiting for markets to open up, Monday. #margincalls

2/ Normally, a billionaire like Musk could refinance debt, but Tesla’s stock decline makes that harder.If investors demand more security, Musk may have no choice but to liquidate assets. Worse, a major stock sell-off could spook the market, causing Tesla’s valuation to tank even further #MarginCalls

I've said it forever, "wealth" based in volatile, overvalued shares is not wealth at all. It is nothing other than access to credit, secured by marginal securities.

When the "value" of those securities fall, #MarginCalls occur, debts must be covered by cash, & access to credit is reduced. #MuskFail

#investors had funded these riskier positions by borrowing in lower-yielding currencies like #yen - with these sharp reversals, investors faced #margincalls and quickly moved to de-risk, prompting a cascade of selling.

9/ 💰 Higher futures prices lead to increased margin calls, putting additional stress on traders and roasters alike. This is why consumers are likely to see coffee prices continue to rise in the coming months. #MarginCalls #CoffeeCost