What a snowbank call?

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1109011

2026-08-27 15:36

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A snowbank call refers to a situation in finance, particularly in options trading, where a trader has a large number of short positions in options, resulting in substantial potential losses if the market moves against them. This term can also imply a scenario where traders are faced with a significant amount of margin calls due to adverse price movements. Essentially, it highlights the risk involved in trading strategies that rely on short selling options.

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