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Well I don't want to say positive things about financial risk models, but it does make sense that they flash higher risk when the price has moved so much. Basi
by lordnacho 6y ago
Well I don't want to say positive things about financial risk models, but it does make sense that they flash higher risk when the price has moved so much.
Basically, if I'm lending you money to buy something and that thing is suddenly moving a whole lot more than it used to, it's prudent to ask for more collateral to cover your potential losses.