verb
Internet Slang
snowballing
SNOH-baw-ling · verb · informal
Losses or gains compounding rapidly out of control.
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Definitions
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When a position's movement accelerates and compounds — losses (or gains) piling up faster and faster as momentum or forced trades feed on themselves.
“The margin calls started snowballing and the whole thing collapsed.”
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snowballing In A Sentence
The margin calls started snowballing and the whole thing collapsed.
Origin & Usage
Common finance metaphor for compounding effects; used in WSB blowup and squeeze narratives.
Variants
snowball
People Also Ask
What does 'snowballing' mean in trading?
It describes losses or gains compounding faster and faster, as momentum or forced trades feed on themselves and the move accelerates out of control.
How does a loss snowball?
Falling prices can trigger margin calls, forcing sales that push prices lower still, triggering more margin calls — a self-reinforcing spiral.
Can gains snowball too?
Yes. In a squeeze, rising prices force shorts to cover, which drives the price higher and pulls in more buyers, compounding the gains.
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