3 ms·
> These days, with computer trading, that 40% drop may happen faster than 100 ms There are circuit breakers that trigger at 7%, 13% and 20% right? Now, I don't
by nodesocket 10y ago
> These days, with computer trading, that 40% drop may happen faster than 100 ms
There are circuit breakers that trigger at 7%, 13% and 20% right? Now, I don't know if they are tested against HFT these days, but I would suspect they could rollback trades if needed. Also, there is Rule 48[1] to help.
[1] - https://en.wikipedia.org/wiki/Rule_48 https://en.wikipedia.org/wiki/Rule_48
- codecamper 10y agowho's computer is faster? The traders or the circuit breaker trigger?
- nodesocket 10y agoCorrect me if I am wrong, but since all trades go through the exchanges (circuit breakers), them right? Plus they can rollback trades if needed.
- codecamper 10y agoHey. I just realized I was maybe too harsh on all this. You are right, investing is better than a savings account. However, be careful these days. Read what other top investors are doing. barrons.com & marketwatch sometimes say what other top investors are doing. Many are keeping some cash. Good to have when the market drops. Many have short positions. The best returns come when you buy after a correction & sell high. ETFs do well when the market is marching upwards. Maybe one more year of that but it can't go on forever. 1.1 to a high power starts to consume everything in the universe.