The New York Stock Exchange and the Nasdaq OMX Group say they will cancel trades involving stocks that saw sharp volatility at the height of the market’s steep intraday decline Thursday afternoon.
The NYSE Arca unit of NYSE Euronext (NYX: 29.22, -0.63, -2.11%) and Nasdaq, as well as other markets, planned to cancel all trades executed at prices that were greater than or less than 60% away from the last printed price prior to 2:40 p.m. Eastern time, up to 3 p.m.
I find these decisions particularly unfair and unjustifiable.
WHERE DOES THAT COME FROM? How do you justify it?
How do you explain to a speculator (we are all speculators, right?) that he lost 59% but his neighbor’s 61% loss was canceled?
How to explain to the guy who had the guts to buy at 70% drop that he’s going to have his profits taken away?
Since when the exchange’s role is to arbitrate between its users?
I don’t use stop-losses because I have had similar experiences in the past (20-30% intraday drop before recovery). Those who use stop orders should take their responsibilities.
Those who trade on the market should take their responsibilities.
WHERE DOES THAT COME FROM? How do you justify it?
How do you explain to a speculator (we are all speculators, right?) that he lost 59% but his neighbor’s 61% loss was canceled?
How to explain to the guy who had the guts to buy at 70% drop that he’s going to have his profits taken away?
Since when the exchange’s role is to arbitrate between its users?
I don’t use stop-losses because I have had similar experiences in the past (20-30% intraday drop before recovery). Those who use stop orders should take their responsibilities.
Those who trade on the market should take their responsibilities.
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