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Interesting, given the date (July 2009). Is there a presumed connection with last week's 1000 point drop? A mis-order to sell at any price meets the HFT scam th
by JacobAldridge 17y ago
Interesting, given the date (July 2009). Is there a presumed connection with last week's 1000 point drop? A mis-order to sell at any price meets the HFT scam that rapidly, though temporarily, drops to the extreme price (in this case, $0.00 or $0.01).
- btilly 17y agoThe connection is not so simple. People who do HFT are painfully aware that orders get broken, and so all exited the market before the drop really began going. The 0.01 orders are always hanging around. However the fact that people have come to depend on HFT to help make markets means that when they disappear unexpectedly the market is smaller than it would have been, which makes large price swings much more likely.