4 ms·
Point is you dont know what the loss is. 1) They bought too much stock (incorrectly) 2) realized WTF, stopped everything 2a) more likely their clients said W
by pheon 14y ago
Point is you dont know what the loss is.
1) They bought too much stock (incorrectly)
2) realized WTF, stopped everything
2a) more likely their clients said WTF is wrong first
3) had to sell the stock for the rest of the day.
Its only after they sold everything did the $440MM price tag surface. Hopefully they sold most of their positions to goldman (instead free market) so one of their investors made a boatload of cash.. giving them favorable terms for a line of credit.
- sp332 14y agoThis is wrong. The algorithm was buying and selling constantly, sometimes losing small amounts of money (usually about $15) each time, sometimes as often as 20-40 times per second for each of about 150 symbols.