Sunday, May 9, 2010
As if trading stocks and shares was not dicey enough!
We discussed that 'fat finger' is when someone types the wrong number on a computer - a suggested reason for the US stock market going crazy last week; I did not realise that, once a significant drop happens, auto-trading intelligent computers can cascade further drops into a rapid drop or crash... Should trades happen at a limited speed in order to allow time to investigate sudden market effects? Is the sensible future of trading a slow down in trading speed? How else can we avoid the craziness of a savings wipe-out caused by intention or by Mr Fat Finger and his white cat?