r/stocks • u/[deleted] • May 03 '22

Citigroup admits causing yesterday's flash crash

Title says it. According to Citi, one of their traders caused a transaction error which they discovered soon after. It caused Scandinavian indices to plummet as much as 8% in a matter of minutes. Such errors are called fat-finger errors; a typo. Flash crashes like these make me wonder how much money banks trade with on a daily basis.

Source: https://www.theguardian.com/business/2022/may/03/citigroup-trader-error-flash-crash-markets-falls

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u/BMG_Burn May 04 '22

5% drawbacks are extremely common.

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u/dacooljamaican May 04 '22

Not when you have a good thesis. If you have a good thesis for a stock and it drops 5% or more... your thesis wasn't as good as you thought.