3 ms·

None. This provides profit opportunities to those who will "heal" the price. Also, exchanges will revert back trades that happen over these flash crashes.

• omegant 13y ago
  How long before someone (a hacker no doubt) games the system to create a selling spiral, just waiting to take profit of the rebound. If it´s well planned the one causing the dive is not going to be the one taking the profit (at least that it can be proved).
  • jermy 13y ago
    Well, it's been a common enough movie plot (cf. Casino Royale where the Antagonist engineers terrorist attacks on high-profile companies whilst short-selling their stocks).
  • jzwinck 13y ago
    We need not wait for that to happen. Such shenanigans have been observed and documented already, such as in the book "Reminiscences of a Stock Operator." It was written in 1923, and worth reading today.
  • jrockway 13y ago
    It will probably happen when one of the stock exchanges says "we won't revert fraudulent trades anymore". Until then, I kind of doubt it.