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Ok. None of those have had any long term negative outcomes. What was I supposed to imagine?
by kasey_junk 7y ago
Ok. None of those have had any long term negative outcomes. What was I supposed to imagine?
- azinman2 7y agoA stock dipping isn’t so bad because it can go back up. A nuclear missiles cannot unexplode.
- kasey_junk 7y agoAnd professionals price the downside into those trades. You don’t engineer trades the same way you do nukes cause it literally doesn’t matter if you get them wrong. As the history of “flash crashes” has shown.
- throwaway2048 7y agoA Bit easier to recover from a market dip than a nuclear strike don't you think?
- cheez 7y agoIt wasn't even that you recovered from the dip, the trades were actually busted (invalidated.) Can't unexplode a bomb, for sure.
- kasey_junk 7y agoTrades are not routinely busted during flash crashes.
- cheez 7y agoThey were in "the" flash crash.
- gknoy 7y agoIt had some pretty long term negative effects for Knight Capital.
- kasey_junk 7y agoKnight didn’t suffer from a flash crash. They suffered from a operational risk incident. This is literally something that professionals price into their trades. The long term negative ramifications were nothing. The next day a new firm was running the same trades under the same name.
- cheez 7y agoI thought Knight got bought out a year later?