Deleveraging Or The start of the end: As shown in the picture at the date of 11 march 2020 the gold knew a massive operation of sales after the feds declaration of a massive quantitative easing program. a lot of financiers Acteurs explain this drop by a phenomenon called Deleveraging so what is Deleveraging? The term refers to the point at which a firm tries to cut down its financial leverage or its debt. In our case here we talk about some big hedge funds and institutional try to pay off any or all existing debts and provide liquidity. by selling off assets to raise the money for the purpose of handling other assets decline (like stocks). Without deleveraging, those entities may face a risk of a lack of liquidity and consequently, their inability to withstand the collapse in prices of other assets. So the questions are will we see another deleveraging those three coming months? and how market makers will use them?
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