Parsad Posted October 8, 2012 Share Posted October 8, 2012 I've been warning about this for some time, but something bad is going to happen one day from the huge amount of volume HFT's are doing...almost guaranteed to create panic selling at some point in time...and then who knows what it will trigger on the derivative side with counterparty liability. Cheers! http://www.cnbc.com/id/49333454 Link to comment Share on other sites More sharing options...
LC Posted October 8, 2012 Share Posted October 8, 2012 Is it wrong to hope so? I'd like some of my ridiculously cheap limit orders to be filled... Link to comment Share on other sites More sharing options...
CONeal Posted October 8, 2012 Share Posted October 8, 2012 But once these machines create a panic all they do is cancel the trades. Kinda feels like heads they win, tails retail is not allowed to take advantage of it. Link to comment Share on other sites More sharing options...
Parsad Posted October 9, 2012 Author Share Posted October 9, 2012 But once these machines create a panic all they do is cancel the trades. Kinda feels like heads they win, tails retail is not allowed to take advantage of it. At some point, when you get significant panic selling in the ensuing rush after a large flash crash, you will not be able to cancel all of those trades. Somebody is going to take a hit eventually (derivatives losses), and it won't be pretty. Markets in the short-term work on confidence and fear, and if you have fear for a prolonged period...such as after a flash crash were people become extremely risk averse...you could see widespread selling. Cheers! Link to comment Share on other sites More sharing options...
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