Yes. High Frequency Trading. I feel pretty confident saying that is what caused the May 6 flash crash and the subsequent one stock flash crashes that have happened since then that you never hear about on CNBC or Bloomberg. I believe I've heard one reported in an off the cuff comment.
You can rent a seat on the NYSE for thousand and thousand of dollars and set up your computer and run an algorithm that trades billions of times faster in front of human traders. You make money on volume not so much on how the market behaves. Nanosecond quote stuffing programs that run in front of human traders.
When the programs fuck up in unision shit crashes. Stop loss triggers are taking out and people get wiped out. The "regulators" have been coming in and setting back an arbitrary price to refund people their losses. Too bad so sad for everyone else. Volatility is fuel to the fire for HFT problems. With QEII coming to an end I may have to put up my Dow 13,000 hat and bust out the Dow 0 hat.
It's the Government Sach's, Bank Of Meryl Lench Countrywide (BofA), JP Moron Casino. Play at your own risk.
You can rent a seat on the NYSE for thousand and thousand of dollars and set up your computer and run an algorithm that trades billions of times faster in front of human traders. You make money on volume not so much on how the market behaves. Nanosecond quote stuffing programs that run in front of human traders.
When the programs fuck up in unision shit crashes. Stop loss triggers are taking out and people get wiped out. The "regulators" have been coming in and setting back an arbitrary price to refund people their losses. Too bad so sad for everyone else. Volatility is fuel to the fire for HFT problems. With QEII coming to an end I may have to put up my Dow 13,000 hat and bust out the Dow 0 hat.
It's the Government Sach's, Bank Of Meryl Lench Countrywide (BofA), JP Moron Casino. Play at your own risk.
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