Episode Details
Back to EpisodesVolatility Has Fallen 31% in July, Leverage Is Declining: Liquidation Cascade Risk Has Decreased
Episode 217
Published 2 months, 2 weeks ago
Description
This brief examines what is happening inside the volatility compression. Low volatility is neutral on its own - its meaning depends on the direction of positioning. Leverage is currently declining, so the risk of a sharp move amplified by a liquidation cascade is lower than it was a month ago.