In the financial markets, the term “widow maker” refers to a transaction that results in large, even catastrophic, losses.
Widow maker can also refer to a trade in which the market repeatedly breaks market consensus and even defies historical patterns, resulting in losses for anyone trying to trade.
The term “widow maker” has also been used in forestry and medicine and refers to the possibility of sudden death.
Normal trading in financial markets is related to natural gas futures.
The most famous widow-making deal is shorting Japanese government bonds (JGB) as the Japanese government continues to cut interest rates.