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 ...
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First Published: Thu, February 08 2018. 01:38 IST
