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<p>[QUOTE="InfleXion, post: 1539812, member: 29012"]When there can be literally millions of trades per second from a single source, that is significant IMO, because the price of a stock can go to zero faster than you can blink. You are correct in that the behavior is not new, but the impact of robot traders is something we have not dealt with until the last decade, and the amount of robot trades is increasing exponentially. It accounts for approximately 90% of all market movement today, and those of us who work with computer systems know that there is no such thing as bug free. I also agree that just because the stock goes to zero that doesn't mean the company has zero worth, but people still make and lose money off the price regardless. I would also point out that the only reason the price goes back to its norm before the flash crash is because trading is halted in every case. Otherwise if left to the market it would be obliterated for good. Since computer algorithms are doing so much of the trading, there is real time reaction to market movements that can cascade before a person ever realizes what happened or why.[/QUOTE]</p><p><br /></p>
[QUOTE="InfleXion, post: 1539812, member: 29012"]When there can be literally millions of trades per second from a single source, that is significant IMO, because the price of a stock can go to zero faster than you can blink. You are correct in that the behavior is not new, but the impact of robot traders is something we have not dealt with until the last decade, and the amount of robot trades is increasing exponentially. It accounts for approximately 90% of all market movement today, and those of us who work with computer systems know that there is no such thing as bug free. I also agree that just because the stock goes to zero that doesn't mean the company has zero worth, but people still make and lose money off the price regardless. I would also point out that the only reason the price goes back to its norm before the flash crash is because trading is halted in every case. Otherwise if left to the market it would be obliterated for good. Since computer algorithms are doing so much of the trading, there is real time reaction to market movements that can cascade before a person ever realizes what happened or why.[/QUOTE]
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