Disliked{quote} what do you mean????? They are not responsible of losses done yesterday? So ... Traders lost will pay and traders who won will get paiiiiiiiiiid :dIgnored
Insolvency occurs when an individual or a firm is unable to meet its financial obligations. Accounting insolvency happens when total liabilities exceed total assets (negative net worth). Cash-flow insolvency involves a lack of liquidity to pay debts as they fall due.
DEFINITION of 'Insolvency:
When an individual or organization can no longer meet its financial obligations with its lender or lenders as debts become due. Insolvency can lead to insolvency proceedings, in which legal action will be taken against the insolvent entity, and assets may be liquidated to pay off outstanding debts.
INVESTOPEDIA EXPLAINS 'Insolvency'
Before an insolvent company or person gets involved in insolvency proceedings, it will likely be involved in more informal arrangements with creditors, such as making alternative payment arrangements. Insolvency can arise from poor cash management, a reduction in the forecasted cash inflow or from an increase in cash expenses.