Trading halted as U.S. stocks plummet • Hacker News Board

Re: Trading halted as U.S. stocks plummet

#201

Post by magduf » Mon, Mar 09, 2020, 5:24 PM UTC

mnm1 wrote: post #177

magduf wrote: post #175

Earlier quoted context omitted.

>Insofar as he can be said to understand anything Well, while he doesn't seem to have much understanding of economics or how to run a government properly, let's give credit where credit is due: he certainly seemed to understand how to get people to vote for him a lot better than his political competitors did.

That's why he got less votes than his opponent.

Are you seriously bringing that up again? He won the election. The number of votes is irrelevant. Maybe that's why he won: he actually understands this simple fact about how the Constitution works, and people like you either don't, or simply refuse to.

Re: Trading halted as U.S. stocks plummet

#202

Post by Isamu » Mon, Mar 09, 2020, 5:24 PM UTC

bilekas wrote: post #180

Genuine question: They can just do that ? Issue a trading halt because they don't like the direction it's going ? > “There’s a reason why they have those circuit breakers -- it’s to give people time to come back from panicked feelings,” Seems strange that the market is kinda able to be manipulated like that. I'm not saying this is a bad move, just surprised that someone can do it.

Also because of algorithmic trading. You don't want to get into an accelerated get-out-now spiral.

Re: Trading halted as U.S. stocks plummet

#203

Post by allovernow » Mon, Mar 09, 2020, 5:24 PM UTC

bilekas wrote: post #189

_se wrote: post #186

Earlier quoted context omitted.

"They" don't do anything - this is called a circuit breaker, and is automatically triggered. There are three breakers: L1 - 7% down before 3:25pm - 15 minute halt L2 - 13% down before 3:25pm - 15 minute halt L3 - 20% down - halted for the remainder of the day Only a single L1 and a single L2 breaker can occur in a single day, e.g. the market falling below 7%, rising, then falling again will not trigger a second L1 br…

Okay thats fine, but who implements/decides these circuit breakers ? And what purpose to they serve only to limit a mass sell off ? Nice point about only 2 daily. But still seems crazy.

AFAIK people can still trade in private, just not on the NYSE.

So don't worry, it's only us regular guys that get screwed. Big firms can still contact each other to make deals.

Re: Trading halted as U.S. stocks plummet

#204

Post by _se » Mon, Mar 09, 2020, 5:24 PM UTC

jagged-chisel wrote: post #199

_se wrote: post #186

Earlier quoted context omitted.

"They" don't do anything - this is called a circuit breaker, and is automatically triggered. There are three breakers: L1 - 7% down before 3:25pm - 15 minute halt L2 - 13% down before 3:25pm - 15 minute halt L3 - 20% down - halted for the remainder of the day Only a single L1 and a single L2 breaker can occur in a single day, e.g. the market falling below 7%, rising, then falling again will not trigger a second L1 br…

> Only a single L1 or L2 breaker can occur in a single day. I don't follow. You'd hit 7% before 13%, so how would L2 ever execute?

Sorry - I meant that neither L1 nor L2 can trigger twice in a day, E.g. down 8%, up 2%, down 9% does not trigger a second L1 breaker.

Re: Trading halted as U.S. stocks plummet

#205

Post by eej71 » Mon, Mar 09, 2020, 5:24 PM UTC

A4ET8a8uTh0 wrote: post #198

bilekas wrote: post #180

Genuine question: They can just do that ? Issue a trading halt because they don't like the direction it's going ? > “There’s a reason why they have those circuit breakers -- it’s to give people time to come back from panicked feelings,” Seems strange that the market is kinda able to be manipulated like that. I'm not saying this is a bad move, just surprised that someone can do it.

Without going into too much detail, short answer is yes. Most people don't seem to know how far away current setup is from 'free market' touted in school. It is weird given that this information is not hidden. It is just not widely spread.

These rules are completely in keeping with the free market.

Re: Trading halted as U.S. stocks plummet

#206

Post by totaldude87 » Mon, Mar 09, 2020, 5:24 PM UTC

bilekas wrote: post #189

_se wrote: post #186

Earlier quoted context omitted.

"They" don't do anything - this is called a circuit breaker, and is automatically triggered. There are three breakers: L1 - 7% down before 3:25pm - 15 minute halt L2 - 13% down before 3:25pm - 15 minute halt L3 - 20% down - halted for the remainder of the day Only a single L1 and a single L2 breaker can occur in a single day, e.g. the market falling below 7%, rising, then falling again will not trigger a second L1 br…

Okay thats fine, but who implements/decides these circuit breakers ? And what purpose to they serve only to limit a mass sell off ? Nice point about only 2 daily. But still seems crazy.

https://www.nasdaq.com/articles/market-wide-circuit-breakers...

Re: Trading halted as U.S. stocks plummet

#207

Post by rogerkirkness » Mon, Mar 09, 2020, 5:24 PM UTC

jagged-chisel wrote: post #199

_se wrote: post #186

Earlier quoted context omitted.

"They" don't do anything - this is called a circuit breaker, and is automatically triggered. There are three breakers: L1 - 7% down before 3:25pm - 15 minute halt L2 - 13% down before 3:25pm - 15 minute halt L3 - 20% down - halted for the remainder of the day Only a single L1 and a single L2 breaker can occur in a single day, e.g. the market falling below 7%, rising, then falling again will not trigger a second L1 br…

> Only a single L1 or L2 breaker can occur in a single day. I don't follow. You'd hit 7% before 13%, so how would L2 ever execute?

This means each execute once, not mutually exclusive.

Re: Trading halted as U.S. stocks plummet

#208

Post by savanaly » Mon, Mar 09, 2020, 5:25 PM UTC

walrus01 wrote: post #188

Serious question, is anyone watching this carefully and trying to determine when things will bottom out (perhaps in a week or two), to buy stocks, ETFs, and such at the bottom of the dip? Hindsight is 20:20 of course, but there's a number of equities that one could have purchased shortly after the 2008 financial crisis that proceeded to make significant gains between 2009 and 2019.

It's specifically because there are huge numbers of people watching this carefully and trying to do that that it is irrational on the margin to try to do so.

Re: Trading halted as U.S. stocks plummet

#209

Post by patleeman » Mon, Mar 09, 2020, 5:25 PM UTC

jagged-chisel wrote: post #199

_se wrote: post #186

Earlier quoted context omitted.

"They" don't do anything - this is called a circuit breaker, and is automatically triggered. There are three breakers: L1 - 7% down before 3:25pm - 15 minute halt L2 - 13% down before 3:25pm - 15 minute halt L3 - 20% down - halted for the remainder of the day Only a single L1 and a single L2 breaker can occur in a single day, e.g. the market falling below 7%, rising, then falling again will not trigger a second L1 br…

> Only a single L1 or L2 breaker can occur in a single day. I don't follow. You'd hit 7% before 13%, so how would L2 ever execute?

I'm pretty sure these need to be hit consecutively.

Re: Trading halted as U.S. stocks plummet

#210

Post by [deleted] » Mon, Mar 09, 2020, 5:25 PM UTC

jagged-chisel wrote: post #199

_se wrote: post #186

Earlier quoted context omitted.

"They" don't do anything - this is called a circuit breaker, and is automatically triggered. There are three breakers: L1 - 7% down before 3:25pm - 15 minute halt L2 - 13% down before 3:25pm - 15 minute halt L3 - 20% down - halted for the remainder of the day Only a single L1 and a single L2 breaker can occur in a single day, e.g. the market falling below 7%, rising, then falling again will not trigger a second L1 br…

> Only a single L1 or L2 breaker can occur in a single day. I don't follow. You'd hit 7% before 13%, so how would L2 ever execute?

[deleted]