Losing money is one of the loneliest feelings. It was Oct 22nd, 2008. Lehman Brothers, the investment bank, had filed for bankruptcy the month before. The markets were panicking. A thousand people surrounded me, almost all of us slouched in our seats, staring at computer screens. I had eight, all flashing prices of assets that I couldn't touch, but, oh, I could feel.I myself was waiting for one price to flash, an interest rate in Brazil. I had bet that rates would lower over time, from 15.10% to 14.50% or so. The size of my bet was 20,000 USD for every one hundredth of a percent (or 20k per basis point). A move from 15.10% to 15.00% would make me 200,000 USD. A move to 15.20% would lose me the same amount. [More]














Source: How to Lose $3 Million in 1 Second