Unfortunately it looks like you had a perfect storm of
1) Large order sent to market
2) Exchanges with a serious lack of liquidity
3) stop loss orders making things worse.
Everyone has their personal pet peeves, mine is stop loss orders. It's one of the 3 things that amateurs tend to use with out any understanding of markets. The other two being use of margin, probably doesn't need any explanation, and trading currencies/currency pairs.
In today's markets, stop loss orders are like market orders........
99.99% of the time only people who don't know what they are doing use them.
> Stop loss orders aren't “like” market orders, they are market orders with a triggering event.
A few things about this sentence are wrong, don't worry, markets can be tough to figure out:)
1) By your very sentence you agree they are the same but different?????
2) I never said stop loss orders behaved as market orders, I said they were alike in that most people shouldn't be using them.
4) There isn't 1 type of stop loss.
There is stop loss limit, in which the user specifies a price that the stop loss is triggered and then a limit price that the order is active to. This is sometimes called a stop limit order.
Or stop loss market in which only one price is given, this is the price at which the order translates into a market order. This is sometimes called a stop market order.
> There is stop loss limit, in which the user specifies a price that the stop loss is triggered and then a limit price that the order is active to. This is sometimes called a stop limit order.
Every professionally-published source I've seen—whether documentation for particular exchanges supported order types, discussion of the relative merits and caveats of given order types in trading-oriented outlets, etc. has consistently referred to this as “stop limit” and reserved “stop loss” for an order in which a market order is triggered by the stop price.
It looks like the other points of apparent disagreement are connected to this different understanding of the terminology.
Other markets like NYSE and NASDAQ have circuit breakers. If an index declines by a certain amount, all trading is halted so people can think and sort out their positions. This doesn't stop a single stock from flash crashing, but transactions during a flash crash are frequently reversed.
When a large market order come in, if it looks like it will move the price by more than a certain percentage, warn the seller there isn't enough depth to support his order.
The richest one percent of this country owns half our country's wealth, five trillion dollars. One third of that comes from hard work, two thirds comes from inheritance, interest on interest accumulating to widows and idiot sons – and what I do, stock and real estate speculation. It's bullshit. You got ninety percent of the American public out there with little or no net worth. I create nothing. I own. We make the rules, pal. The news, war, peace, famine, upheaval, the price per paper clip. We pick that rabbit out of the hat while everybody sits out there wondering how the hell we did it. Now, you're not naive enough to think we're living in a democracy, are you, Buddy? It's the free market. And you're a part of it. You've got that killer instinct. Stick around, pal, I've still got a lot to teach you.
12 comments
[ 0.13 ms ] story [ 66.3 ms ] thread1) Large order sent to market
2) Exchanges with a serious lack of liquidity
3) stop loss orders making things worse.
Everyone has their personal pet peeves, mine is stop loss orders. It's one of the 3 things that amateurs tend to use with out any understanding of markets. The other two being use of margin, probably doesn't need any explanation, and trading currencies/currency pairs.
In today's markets, stop loss orders are like market orders........ 99.99% of the time only people who don't know what they are doing use them.
https://news.ycombinator.com/item?id=13847775#13848698
https://news.ycombinator.com/item?id=10129355
https://news.ycombinator.com/item?id=12912781#12913058
A few things about this sentence are wrong, don't worry, markets can be tough to figure out:)
1) By your very sentence you agree they are the same but different?????
2) I never said stop loss orders behaved as market orders, I said they were alike in that most people shouldn't be using them.
4) There isn't 1 type of stop loss.
There is stop loss limit, in which the user specifies a price that the stop loss is triggered and then a limit price that the order is active to. This is sometimes called a stop limit order.
Or stop loss market in which only one price is given, this is the price at which the order translates into a market order. This is sometimes called a stop market order.
Does this clear things up?
Every professionally-published source I've seen—whether documentation for particular exchanges supported order types, discussion of the relative merits and caveats of given order types in trading-oriented outlets, etc. has consistently referred to this as “stop limit” and reserved “stop loss” for an order in which a market order is triggered by the stop price.
It looks like the other points of apparent disagreement are connected to this different understanding of the terminology.
And circuit breakers.