Definition of «flash crash»

A flash crash is a sudden and rapid decline in the price of an asset or security, often caused by high-frequency trading algorithms that exacerbate small market movements. The term was coined after the 2010 Flash Crash when the Dow Jones Industrial Average plummeted nearly 1,000 points within minutes before rebounding just as quickly. While the cause of flash crashes is often unclear and may involve a combination of factors such as algorithmic trading, market volatility or economic news, they can have significant consequences for investors and markets alike.

Sentences with «flash crash»

  • The second comparison is to the number of mini flash crashes during any three minute window during regular market hours (9:30 am — 4:00 pm) during the same days. (journals.plos.org)
  • And it's not that hard to fix: Throw in a pause when prices move too much, and you can more or less eliminate flash crashes with technology. (bloomberg.com)
  • The price per ethereum after last week's ETH market flash crash has been holding just above the $ 300 range. (simplybitcoins.com)
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