3 ms·
Yes it was dangerous, but nothing is “erased” if that market valuation is restored a few minutes later
by brown9-2 6y ago
Yes it was dangerous, but nothing is “erased” if that market valuation is restored a few minutes later
- slg 6y agoFor a market to move, people need to buy and sell. So while value might not be erased on a global scale if the market recovers to the original position, lots of people will lose (and gain) large amounts of money.
- ZachPruckowski 6y agoIn the aggregate sense, it eventually netted out. But a lot of people who sold when it looked like prices were collapsing sure got a pretty decent chunk of their bank accounts "erased".
- blisseyGo 6y agoThat's not true. Many people have auto-sell / buy triggers set up when something drops below a value.
- singhrac 6y agoI don't know about many. I don't know of any retail investors that do, and if I did I would have guessed that they'd be buying when prices drop, not selling.
- gkop 6y agoParent did say “sell / buy” (perhaps they ninja edited). A limit buy order is a basic tool of retail investors (like me :) ) and may have been what parent was thinking of. That said, I don’t agree with parent or great grandparent that the destructive impact is large.
- ceo_tim_crook 6y agothere have been flash crashes before one reason why there are circuit breakers