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On the stock exchanges in the USA, they do that because we didn't use to and trading bots that were mis-configured went nuts and broke the markets for a while.
by zie 3y ago
On the stock exchanges in the USA, they do that because we didn't use to and trading bots that were mis-configured went nuts and broke the markets for a while.
Now they stop trading for (15?) minutes to let everyone make sure it's real and not their trading algorithms being stupid.
It's not about not letting the stocks crash to far, it's about making sure the pricing is accurate.
The Federal Reserve however is a different story. :)
- grecy 3y ago> It's not about not letting the stocks crash to far, it's about making sure the pricing is accurate. If that were true, they would do the same thing if it was going up "too quickly". To the surprise of nobody, they don't.
- astrange 3y agoYes there are, it's called LULD. https://www.nasdaq.com/articles/all-about-lulds https://www.nasdaq.com/articles/all-about-lulds Don't think the entire market has ever gotten unreasonably high due to a trading error.