A short conversational excerpt from the YouTube video "How Markets Avoid Imbalance" (speakers: Kosta Ouzas and another speaker). The speakers discuss high-leverage positions (notably 25x) and state that the October 10th crash wiped out many high-leverage positions — higher leverage positions are eliminated faster and have not yet repopulated the order book.
And what's it look like now if we cut in and get rid of some of the bigger like on this. Let's look at the 25X and see what the story is telling us about this move right now.
Yeah, the highest. The higher the leverage, the faster it's taken. So currently we don't have a lot of 20x5x because it's been wiped out. And it's been wiped out faster than it can repopulate. Right. So we had a decent amount of 25x before the October 10th crash. When the October 10th crash came, we just basically wiped the board of everything.
