Margin Call

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I just came across the real life Margin call incident.

So much to learn from the events.

X had a big position in silver and gold through my friend.

On Thursday X had a pop up on the app that Margin will be increased on silver and gold on MCX.

That day X had to sense, the rippling effect of this > leads to high margin> that will be in crores, so ppl will not be able to handle it.  > Closing out the positions. >  Big selling> price down

The first thing X will need to do is to to place an sell order and short silver and gold in intraday and take pro/loss

let’s see what X will do?!

Update:

All Orders in the morning were rejected.

What a hell of a day to witness how the market would be !!

CA Final theory in the books couldn't apply in Reality?

Get up bro! They were meant to use in real life 🧬.
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