A loss spiral is the feedback in which a leveraged holder’s losses force it to sell, its sales lower prices, and the lower prices inflict further losses on it and on other holders of the same assets. A margin spiral is the feedback in which rising volatility raises margin requirements, the higher margins force deleveraging, and the forced sales raise volatility further.
Quantitative Finance · Glosarium
Apa itu Loss spiral, margin spiral?
Dikenal juga sebagai: loss spiral · margin spiral