Thursday, October 10, 2013

Twitter, Fat Finger Mistakes, Oil, and Yet Another Nail in the Efficient Market Hypthothesis,

I promise that I really had intended to drop this theme of fat finger trading mistakes and their implications for efficient market theory but the news just won't let me.  How about this article from today about oil traders who mistakenly believed that a tweet about the 1973 Arab-Israeli war, discussing Israel's bombing of Egyptian airfields, was current and reacted accordingly by driving oil prices up today.  How are people this careless allowed to make trades?  What does this say about the need to act quickly in markets and the corresponding mistakes?

No comments:

Post a Comment