4 ms·

In the mentioned stocks? Very high. However for the broader market; GME and friends are tiny. Ristricting trading is a way of managing risk.

jeffbee 6y ago
The last giant crash was triggered by a single party (Bear Stearns) running out of credit. Do not underestimate the events that could follow if this volatility destabilizes a large market participant.
- TeMPOraL 6y ago
  There's definitely going to be some impact on other stocks, as at the very least, retail trading apps overcompensate and block buys on other stocks (including Freetrade for all the US stocks right now). Hard to quantify the magnitude of the impact, though.
- lm28469 6y ago
  > The last giant crash was triggered by a single party (Bear Stearns) running out of credit. It was waaaaaay more complex than that, the Bear Stearns thing was one of many worldwide symptoms (not cause) of a widespread problem. There is nothing to compare between this GME event and 2008 crisis (even though there are plenty of other issues that could lead to one) https://en.wikipedia.org/wiki/Financial_crisis_of_2007–2008 https://en.wikipedia.org/wiki/Financial_crisis_of_2007–2008
  - dls2016 6y ago
    That was the point of my original post. Not that current events are comparable to historical events as far as the mechanism of crisis is concerned... but that stresses like the ones today have a way of uncovering new and interesting failure modes which people collectively wrote off as unlikely.
  - jeffbee 6y ago
    That is why I said it was triggered by, not caused by.
dls2016 6y ago
> Ristricting trading is a way of managing risk. So when the low probability event actually happens, should I be happy to have had my trading privileges revoked and my risk managed for me?
- klodolph 6y ago
  Robinhood managing its own risk, not yours.

4 ms·

In the mentioned stocks? Very high. However for the broader market; GME and friends are tiny. Ristricting trading is a way of managing risk.

by throwaway4good 6y ago

jeffbee 6y ago
The last giant crash was triggered by a single party (Bear Stearns) running out of credit. Do not underestimate the events that could follow if this volatility destabilizes a large market participant.
- TeMPOraL 6y ago
  There's definitely going to be some impact on other stocks, as at the very least, retail trading apps overcompensate and block buys on other stocks (including Freetrade for all the US stocks right now). Hard to quantify the magnitude of the impact, though.
- lm28469 6y ago
  > The last giant crash was triggered by a single party (Bear Stearns) running out of credit. It was waaaaaay more complex than that, the Bear Stearns thing was one of many worldwide symptoms (not cause) of a widespread problem. There is nothing to compare between this GME event and 2008 crisis (even though there are plenty of other issues that could lead to one) https://en.wikipedia.org/wiki/Financial_crisis_of_2007–2008 https://en.wikipedia.org/wiki/Financial_crisis_of_2007–2008
  - dls2016 6y ago
    That was the point of my original post. Not that current events are comparable to historical events as far as the mechanism of crisis is concerned... but that stresses like the ones today have a way of uncovering new and interesting failure modes which people collectively wrote off as unlikely.
  - jeffbee 6y ago
    That is why I said it was triggered by, not caused by.
dls2016 6y ago
> Ristricting trading is a way of managing risk. So when the low probability event actually happens, should I be happy to have had my trading privileges revoked and my risk managed for me?
- klodolph 6y ago
  Robinhood managing its own risk, not yours.