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Tell that to all the traders whose stop losses were triggered due to flash crashes
by andreilys 7y ago
Tell that to all the traders whose stop losses were triggered due to flash crashes
- samatman 7y agoI'm pretty sure he's not saying a flash crash is harmless, just that it's less harmful than plunging the economy into a worldwide recession.
- ycombobreaker 7y agothat value wasn't "lost" from a holistic sense, but transfered to the counterparty. It's a good argument for why stop orders suck, though. the triggering mechanism is too easy to spoof in volatile/illiquid conditions.
- scarejunba 7y agoSure, I will. That's the risk of a stop loss, man. TANSTAAFL. The country doesn't lose anything because the value is transferred to whoever takes the other side.