Why Silver’s Mysterious Flash Crash Enraged This Trader...
WHAT CAUSED THE FLASH-CRASH IN SILVER?
Vince Lanci explains what he thinks may have happened on Friday when Silver experienced a flash crash in foreign exchange. The price of the metal dropped 10% and recovered in less than 5 minutes, killing a lot of LONG positions and causing a bloodbath in the accounts of margin traders. It's estimated that thousands of accounts were margin called on Friday.
The Chicago Mercantile Exchange (CME) came out and described the move as a ‘glitch’ but many experienced traders are not happy with this explanation. Vince Lanci reckons that the problem is with high frequency trading.
A marketplace where high frequency trading is allowed to be used to be predatory. This is by no means an attack on the CME because they’re doing everything they can to mitigate a situation that is really out of control.
Having said that, he is still bothered by the fact that exchanges and regulatory agencies are not preventing these types of moves from happening in the marketplace, but rather just reacting to them.
We know these things exist. We know they’re out there and they’re killing the markets. So the exchange has allowed an infection inside of it in my opinion and it's war.
WHAT SAY YOU?
What do you think guys? Let me know below!
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Gave this a 25% upvote. Really good content, thanks for sharing. its funny because i see that graph of Silver dropping, and im like, Duh, not realizing that actual markets aren't supposed to do that lol. @cryptoproblems
Thanks heaps brother! Where do you think Silver is going next?
not sure haha
I think both gold and silver will break out and will skyrocket sooner or later. It's only a matter of time. I might publish a new technical analysis of both charts soon. Looking at both charts right now, I think I might be onto something! :P
That's what makes Bitcoin so great - it's un-manipulatable (is that a new word?)!
If millions of traders stopped trading real bitcoin and instead started speculating using huge margins and paper contracts, same thing would happen. Comparing the tiny and small market of bitcoin with the massive and global market for gold and silver is not a very wise thing.
just like a ethereum flash crash, excuse to loot people
only sellers and those with margin calls.
Great post brother, God bless!
Dropped 10% then recovered in 5 minutes, crazy.
They try to explain it away with algorithms and fast computers that take advantage of a thin market but in reality we all know that it's all manipulation in order to screw the margin traders!
honestly, thats exactly what happened. You can see this on any of the exchange if you watch individual trades get moved. When golos moved from 13 cents to 18 cents, that was me, with 3 btc. Thinly traded markets and moves.
And only on one exchange, making it even more thinly traded.
The other day, I was thinking of coming up with a similar algorithm to take advantage of the thin market here in the internal market but I got distracted! LOL :]]]
Automation is the future, if McDonalds staff have to cop it on the chin, so do traders.
I agree. Think about how many hundreds of millions Walmart would lose without automation of efficient routes for product delivery, etc.
We are living in a world of 'manipulation' - that's what I think. The only good news is that when even the elite crooks lose their power - silver will survive and soar.
no need to think, it's proven. They are in court for it.
That flash crash was incredible! But thankfullly the broker I'm using did an emergency fund and we could cover all losses exceding the initial investment in that positions.
See: https://www.reddit.com/r/1Broker/comments/6lsfzt/silver_flash_crash_65_btc_emergency_fund/
For the ones interested https://1broker.com/?r=18402
The dip in some markets was limited to just above 15. CMC markets is one of those brokers that I checked because I have an account with them, and they had somehow managed to filter through the flash crash which is great in my opinion.
thanks @msg768 for this info,
i noticed the exact same thing in LTC/USD a few days ago
seems a lot of markets being manipulated by bad players
deep pockets cleaning out newcomers.
ill say one thing
#HODL
i have silver and gold in physical and don't trade the markets as they are manipulated
People rarely trade in the physical market, due of storage costs. Because of that, the price in the physical market follows the price in the black market or the paper contracts. What I'm saying is that trading the physical is not going to protect you against the manipulation of price.
stops margin calls while holding though
Of course. Because you won't be using any margin lending/borrowing! And that factor alone will play a crucial role in your psychology behind trading because you won't have to worry about getting stopped out. You know that the price will eventually go up so you will hold on to it even if it drops 20% on one day! :]
thats right -- the daily price is not my concern - i am in it till things hit the fan
That's the right spirit in my opinion. Keep it up! ;]
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