What is a flash crash?
A flash crash is a very rapid, deep and volatile fall in prices of stocks within an extremely short period. On Monday, when US stocks witnessed a sudden plunge, many experts called it a ‘flash crash’. Even in India, a flash crash has happened a few times. In October 2012, the market plunged 15.5 per cent within a few minutes causing havoc amid investors.
Why do flash crashes occur?
A flash crash, usually, happens due algorithmic trades and high-frequency trades. In such situations, computers with a pre-programmed logic automatically take decisions
A flash crash is a very rapid, deep and volatile fall in prices of stocks within an extremely short period. On Monday, when US stocks witnessed a sudden plunge, many experts called it a ‘flash crash’. Even in India, a flash crash has happened a few times. In October 2012, the market plunged 15.5 per cent within a few minutes causing havoc amid investors.
Why do flash crashes occur?
A flash crash, usually, happens due algorithmic trades and high-frequency trades. In such situations, computers with a pre-programmed logic automatically take decisions