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> If the price gapped from 300 to 5000 and those options were exercised, that trader could have a loss of $10,000,000. He would lose the value of his account, $
by miguelrochefort 6y ago
> If the price gapped from 300 to 5000 and those options were exercised, that trader could have a loss of $10,000,000. He would lose the value of his account, $200,000… but the brokerage would have to make up the rest of the settlement and take a loss of $9,800,000.
What if the price of a stock went from $300 to $5000 for legitimate reasons, perhaps due to some technological breakthrough. The exact same situation would happen. Would shutting down trading also be justified?