4 ms·

A heuristic like "do not lose more than $100m a day" would have saved the company.

• veyron 14y ago
  PNL limits are required risk checks. Clearly Knight didn't implement them ...
  • harryh 14y ago
    More likely they thought they had implemented them but they were implemented incorrectly.
  • beagle3 14y ago
    Stop-losses are not guarantees of execution. If you're in an illiquid market, or one that moves faster than you're prepared for, then your PNL check may alert you, but it won't save you from the loss.