Discrete Margin & the Liquidation Window: Why a 10% Print Can Land at 18%

Automated excerpt

Same shock, same book: one model arrives in a slope, the other in steps. When price crosses 15%, everyone at 15% triggers in the same batch. One simulation, two shapes. price 0. 856 <= 0. 90 -> -10% bucket (25%) liquidates -> price 0. 824 price 0. 824 <= 0. 85 -> -15% bucket (30%) liquidates -> price 0. 787 price 0. 787 <= 0. 80 -> -20% bucket (25%) liquidates -> price 0.

Selected automatically from source text; not independently written or fact-checked. Read the original for full context.