Turn on CNBC.... It wouldn't be the first time, a bad trade triggered sell stops.....then program selling......and so goes the domino's. I was a trader on the floor of the Chicago Mercantile Exchange for 20 years. If true....I wouldn't be shocked.
LOL.. I can not. I might burn in hell or get tracked because of where I work, you now the mayor is watching
Not sure what you mean, it opened at $61.91 and has been above $50 for the last 5 years. $40's was incredible, $39 is a firesale price.
It seems that it was a error on a P&G trade that started this ball rolling today. It drop close to 30 points which would equate to about 150+ on the dow. That on top of Greece made for an interesting afternoon.
starting to see some reports coming in, it was on Nasdaq apparently. Might be Citigroup who fucked up
Just got a CNBC news flash, NASDAQ cancelling all trades between 1420 and 1500 with a 60% difference from the last trade prior to 1420.
I think I'm good as my brokers website would let me make any trade till well after 1500 and nowhere near 60% change. But, I got a couple of good deals in my opinion. I have my resume ready to go.....Where is the opening going to be??
I traded on the NYMEX for 4 and wouldn't be surprised either. I saw someone do a similar thing, albeit at a much, much smaller scale, to the CL mini, but was afraid it was an issue with TT's pricing and not someone's actual fat-finger order. It took me all of 3 seconds to find out it was legit, but by then the sell orders had disappeared.
Yes, they can do that. Here’s the problem with computerized trading. Sharp fast moves can cause massive issues. A few years back, the E-mini S&P 500 contract at the CME. - Fed comes in and cuts the rate unexpectedly. - S&P 500 futures jump 500 points in 10 seconds ( Pit Traded ) - S&P E-Mini futures ( Computer Trader ) jumps as well, but massive Buy Stops and a limited Sell orders are triggered. More Buys stops trigger more Buy Stops….till no more sell orders. Vacuum now exists. - The E-mini S&P 500 goes to 999999. - Many traders were trading this on the way up and the way down. Laying them off in the S&P 500 pit. ( Five (5) e-mini to One (1) S&P 500 Pit traded ) - One hour after the close, they busted ( canceled ) everything that was out of line with the S&P 500 pit. People lost and made millions with this little computer glitch. Although the story is not out yet, I believe something similar to this happened today, although it may have been triggered by a the B vs. M theory.
MV, correct me if I am wrong because I have never traded on the floor. Only at home and everyday. You still have to enter "zero's" when you enter a trade. It would need to be entered as 16,000,000. I cannot enter a trade for "16 million" shares. In addition, a 16 billion share trade would be almost 8 TIMES the float. I am willing to bet CITI does not own that many shares. I don't buy the glitch thing. Honestly, I have no clue what would cause that besides LOTS of stop limit orders hitting at the same time. Market down again today so evidently investors still think stocks are too expensive right now. Personally, as a daytrader I love this market. The VIX is nuts right now and its relatively easy to swing trade at the moment.
The computer systems on the floor and in large houses can be programmed any way you want. Min. order of 100,000 for instance. When I worked there, many traders converted X-Box type hand controllers to enter orders faster. Some mistakes in the past include, a client (Large Hedge Fund ) telling their filling broker to sell 3 million nominal …..and they sell 3 million contracts. The ALGO programs can cancel buys orders and trip huge sell orders in a nano second. Sell stops turn into “Market Orders” when triggered. “Sell Stop Limit” do not. I watched an interview with the NASDAQ chairman this morning. He avoided every direct question. I believe a number of stocks traded on secondary markets were VERY illiquid. Huge sell orders and program trading sell orders, kicked in and triggered stops and more sell orders. In a few seconds, thousands of huge sell orders took out any BUYS below some of these illiquid stocks. Several companies with Market Caps in the billions traded at ZERO yesterday before making a 99% recovery in seconds. I’m doubting the real story ever comes out. One, they would admit people can manipulate the markets. Two, many investors would flee the markets and lose even more confidence in the markets.
