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What i don´t understand is - there are arbitrage players, who calculate "real value" of the single stocks in each ETF. Aren´t they liquid enough? Because if the
by wusatiuk 11y ago
What i don´t understand is - there are arbitrage players, who calculate "real value" of the single stocks in each ETF. Aren´t they liquid enough? Because if they were, the price would not drop that much, would it?
- deleted 11y ago[deleted]
- lmm 11y agoA lot of stocks were hitting circuit breakers IIRC, so some of the underlying single stocks simply weren't trading for part of the time.
- wusatiuk 11y agoahh, so arbitrage players simply paused trading, as their automated calculations where incomplete?
- lmm 11y agoYeah. A human can probably spot the difference between a flash crash and a true crash, at least after making a few phone calls - but by that point the opportunity has probably gone.
- minimax 11y agoI know it's anecdotal, but I have heard from some of my human prop trader friends about guys who made a killing buying on Monday morning.