When it goes wrong: real blowups

Six real collapses (LTCM and Archegos, Storm Financial, the Swiss franc day, negative oil, GameStop, Terra and FTX), each tied to a mechanic from this course.

Module 25 of 26, in the stage "Your plan". 6 lessons.

Lessons

1. LTCM and Archegos: leverage you cannot seeSee how leverage turns small losses into near-failure, and how exposure split across lenders hides the total. 16 min.
2. Storm Financial: borrowing on borrowingUnderstand how double gearing turned a market fall into negative equity for Australian households. 16 min.
3. 15 January 2015: the Swiss franc dayUnderstand why a stop cannot protect you when a market jumps, and why negative balance protection exists. 16 min.
4. Oil below zero: 20 April 2020Understand how futures expiry and physical delivery broke the idea that a price cannot go below zero. 14 min.
5. GameStop, January 2021: a short squeeze up closeLink short interest, borrow cost and forced buying. 16 min.
6. Terra and FTX, 2022: when the platform is the riskSeparate price risk from platform and counterparty risk. 16 min.

Concepts covered

• Leverage
• Risk of ruin

Keep going

• Previous module: Your own plan and journal
• Next module: Strategy case files: what Tickfloor tested
• All 26 modules and 157 lessons
• Open the first lesson in the course

General information only. It doesn't consider your objectives, finances or needs. Tickfloor holds no financial services licence and never places trades.