An extremely rapid decline in the price of one or more commodities or securities, typically one caused by automated trading.
high frequency trading can trigger a flash crash
Example sentencesExamples
- Look at the costs imposed by the May 2010 Flash Crash.
- The resulting loss of bids entering the market coupled with automated stop-loss sellers created the flash crash.
- On Wall Street, traders put last week's flash crash behind them.
- After the flash crash, the Securities and Exchange Commission moved quickly to apply a Band-Aid in the form of circuit breakers to limit daily price moves.
- The flash crash highlights how the market can take on a life of its own.