Quote:
Originally Posted by Bralkan  |
I didn't read the article, but yeah if the DOW falls do to a technical glitch automated trading systems are going to start firing off orders. As the sell volume increases the bid price is going to fall, and the stock price is going to fall. This will trigger yet more stop loss trading. Many hedge funds and institutional traders are run by highly quantitative models. When this sort of activity happens it fucks the models.
