3 ms·
Could it be possible, that a collaboration between two organizations, one entering the bid or ask at 0.01 and another quickly buying it or selling it could be a
by fnid2 16y ago
Could it be possible, that a collaboration between two organizations, one entering the bid or ask at 0.01 and another quickly buying it or selling it could be arranged such that the particular trade could go through and could trigger lots of stop losses?
You can submit a trade at any amount. During high volume episodes, you'll see trades go through that are vastly "out of whack" so to speak.
It could be a mistake or it could be a strategically planned incident to cause this.
By my math, it doesn't really take a huge amount of money to move a stock in a particular direction. If you spend a couple million buying a stock at high asks, then the value of the underlying market cap of the company could climb by billions in a single day.
There are companies who trade large orders in the millions of shares over long periods of time to avoid pushing the stock too hard in the short term. If you wanted to push the stock hard in one direction, knowing you'll reverse that action with more money, it could be, and actually is lucrative. Companies do it all the time. This one was more noticeable, but not out of the realm of possibility.