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I think that in age of automated trading it's very important. You can't be sure there won't spontaneously emerge some freakish occurrence which will make bots t

by Hitton 7y ago

I think that in age of automated trading it's very important. You can't be sure there won't spontaneously emerge some freakish occurrence which will make bots trade in such degenerate way that it will send markets tumbling; without stopgap measure it could be disastrous.

murillians 7y ago
That is exactly why they implemented these circuit breakers https://en.wikipedia.org/wiki/2010_flash_crash https://en.wikipedia.org/wiki/2010_flash_crash
- sirmoveon 7y ago
  It was hypothesis and later proven incorrect. Some even argue algos helped minimize the turmoil. In the pre-automated era I can see circuit breakers working in a constructive way for the markets. These days, with trading being mostly automated and algorithmic, to me it feels more like a bureaucratic tool to give government institutions some time to play the markets.