Its clear that it was caused by an algorithm error, but the question is why, because it sugest that just 1 operator can move the entire market. If thats
the case forex market its more like a cassino, with someone or a small group controlling all the moves, no fundamentals, either technical analisis cant beat this, if thats the case.
Anyway that flashcrash spoiled the future movement of USDGPB, it obviousilly will fall next days.
Which "algorithm error" ?
It's a panic movement when some news were published. It's how market are working, it can happens at any time on any market.
The computerized market & the high algorithm trading seems high vulnerable for abrupt price excesses. These not predictable flash events should be consider into future investments
and should have an impact of your risk tolerance.
Potential causes of sterling flash crash that compounded earlier losses include ‘fat finger’ error and computer-generated trade
Oh yes Alain, my sentiments exactly, and I think these excesses will get more worse in the future.
That means for me put out a part of your profits out of the accounts regularly from time to time and try to trade exclusively with profit money not with your savings.