about 5 years ago • 1 min
Hey there 👋 Just dropping in to share something we thought Markets Pros might find interesting.
🇨🇭 Early on Monday morning, the “Swissie” dropped almost 1% in just a few minutes. Although it bounced right back shortly after, investors were still shaken by the “flash crash”...
The Swiss franc’s value momentarily dropped to its lowest value since November before swinging to a 0.2% increase within minutes. The drop and bounceback of 110 pips was almost double the currency’s daily average this year.
Investors pointed to Japan’s National Foundation Day holiday on Monday as a reason for the crash – fewer Asian buyers to meet sellers meant lower liquidity, the result of which was the Swissie’s rollercoaster ride 🇯🇵
Another reason might be a “fat finger”, according to some investors – where someone mistypes their trade into the system, causing other investors (and their algorithms) to react to the initial “sell” order – again exacerbated by thin liquidity.
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