Here's an amazing picture I found of the flash crash in motion. It's part of a pdf file that was used for a class at University of Maryland.
Pretty amazing to see it caught in motion like that.
The pdf file is a good read for anyone who doesn't have a real understanding of the causes of the flash crash from a technical perspective.
Here is an extract:
Why Did the Flash Crash Occur?
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One account sold 75,000 contracts ($4 billlion, or about 1.5%
of May 6 volume).
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This was the largest sale by one account from January 1 to
May 6, 2010.
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This sale occurred precisely during the 20 minute period
corresponding to the flash crash and V-shaped rebound.
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The buy side of the limit order book was greatly depleted
when the sale occurred, due to large price declines previously
during the day.
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This sale was executed rapidly compared to other sales of
similar size.
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You can find a copy of the original pdf here:
http://www.q-group.org/pdf/20110325_Kyle_Q-group_06.pdf
Christopher Carrion
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