@vicniederhoffer the definitive explanation I believe for flash crashes. It's margin calls triggered by the notorious broker and fellow travelers. As Bacon says: "The public has no right to lose as much as they do". But it's perfectly legal and unmentionable; but in fairness you have 2 minutes to meet a margin call by wiring money at 2 am to an unreachable counterpart before they take the opposite side to you. You can often see seemingly unnatural huge bids and offers away from the price just waiting to devour you in this context. As mentioned to add risk to injury in the event that one out of a thousand customers isn't exited in time for the broker to take all their chips, they add a risk fee to you next time around to take account of what might happen to them if the market moves 10%or 20% or so in a minute and they can't avalanche you out.





Speak your mind

1 Comment so far

  1. Anonymous on July 8, 2017 11:19 am

    The more i learn of this game the more i realize the imporbability of beating it in the long run and how incredible it is that a few mortals on this earth manage to survive in it. Inadequacy of human faculties seems to be a rule.


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