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"Weekend gap risk is massive.
The changes also greatly reduce so-called gap risk, when a stock price moves significantly after news that comes out in the off hours.
The gap risk of slippage of MtM(^{i}_{t}) and of unpaid contractual cash flows during the liquidation period is the motivation for the initial margin.
Counterparty risk mitigants include the variation margin (VM), tracking the mark-to-market of client portfolios, and the initial margin (IM) set as a cushion against gap risk, which is the risk of slippage between the portfolio and its variation margin during liquidation periods.
To deal with the counterparty credit risk, it suffices to replace A with the process A ♯ introduced in Section 2.8.1 and a fixed maturity T with the effective maturity of a contract at hand (for instance, by T∧τ where τ is the random time of the first default or, more generally, by the effective settlement date of a contract in the presence of the gap risk).
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In a tentative and preliminary sense, info-gap risk appears either as low immunity to failure or as limited opportunity for windfall.
Interventions aimed at CSWs must address knowledge gaps, risk behaviours and structural elements.
Formal exclusion criteria were traumatic initial luxations, open proximal tibial epiphyseal gaps (risk of genu recurvatum) and clearly defined genu valgum (> 10°).
Employing information from a unique representative German survey, we find that adaptation to the host country closes the existing immigrant-native gap in risk proclivity by reducing immigrants' risk aversion and explains the systematic variation in the observed risk attitudes across immigrants of different origins.
In terms of migrants, Bonin et al. ([2012]) find, however, that adaptation to the host country (Germany in their case) closes the gap in risk proclivity by reducing immigrants' risk aversion.
"Why the gap between risk studies and reality?" he said.
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