List of Flash News about leverage drawdown
| Time | Details |
|---|---|
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2026-01-07 17:04 |
1934 Trader Bankruptcy After Market Crash: Assets $84,000 vs Debts $2.5 Million Highlight 29.8x Liability-to-Asset Risk
According to @QCompounding, the trader was blamed for the market crash, received death threats, and by 1934 was bankrupt again with assets of $84,000 and debts of $2.5 million, source: @QCompounding. The figures imply negative equity of about $2.416 million and a liability-to-asset ratio near 29.8x, quantifying severe solvency stress relevant to leverage and drawdown control, source: @QCompounding. For trading strategy, this timeline underlines the need for strict position sizing, liquidity buffers, and counterparty-risk checks in volatile markets, including crypto, to avoid forced liquidation when sentiment reverses, source: @QCompounding. |