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Quantitative Finance · Begrippenlijst

Wat is Exit race?

Definition 29.2 The Desk and the Firm · Hoofdstuk 29 — Case Studies II

An exit race is the sequential liquidation, by several creditors, of collateral or hedges in the same concentrated positions after a common client defaults: each sells into prices moved by those who sold before it, so each creditor’s loss depends on its place in the order as well as on its margin.

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