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RE: Silver’s Flash Crash & The Real World Problems Low Prices Create

in #silver7 years ago

Hey nolnocluap,

Excellent piece! Thank you for sharing.

I had a bit of a look at it from a technical point of view in my silver chart art blog post last week, because as well as the real world implications you outlined above, the leveraged traders also took the brunt of it. Just check out the comments to that blog. So shit...

Labelled by the Chicago Mercantile Exchange (CME) as a nondescript “glitch”, we look at the situation a little more deeply. We’re not so accepting of “glitches” when it comes to aircraft or the safety harness on a roller coaster so why then should the fundamental stability of markets or the industries supplying them with commodities be viewed any differently?

Exactly this!

But this is a system run behind closed doors that we feel we can't control, so just let these things slide. Again. And again. And again.... Where does it stop?

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Great feedback @forexbrokr. Thank you so much! You're right, having a leveraged position in an environment of crashes such as these would be a scary predicament due to the margin requirements. It's nasty stuff.

Not sure where or when it stops but I feel it wont end softly!

Really appreciate the input, thank you again