
What would you have done to prevent the ETHereum flash crash on Coinbase yday? - noloblo
Stop using stop orders?<p>limit orders only?<p>check orders above &gt;1mn $
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chollida1
Unfortunately it looks like you had a perfect storm of

1) Large order sent to market

2) Exchanges with a serious lack of liquidity

3) stop loss orders making things worse.

Everyone has their personal pet peeves, mine is stop loss orders. It's one of
the 3 things that amateurs tend to use with out any understanding of markets.
The other two being use of margin, probably doesn't need any explanation, and
trading currencies/currency pairs.

In today's markets, stop loss orders are like market orders........ 99.99% of
the time only people who don't know what they are doing use them.

[https://news.ycombinator.com/item?id=13847775#13848698](https://news.ycombinator.com/item?id=13847775#13848698)

[https://news.ycombinator.com/item?id=10129355](https://news.ycombinator.com/item?id=10129355)

[https://news.ycombinator.com/item?id=12912781#12913058](https://news.ycombinator.com/item?id=12912781#12913058)

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dragonwriter
Stop loss orders aren't “like” market orders, they _are_ market orders with a
triggering event.

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chollida1
> Stop loss orders aren't “like” market orders, they are market orders with a
> triggering event.

A few things about this sentence are wrong, don't worry, markets can be tough
to figure out:)

1) By your very sentence you agree they are the same but different?????

2) I never said stop loss orders behaved as market orders, I said they were
alike in that most people shouldn't be using them.

4) There isn't 1 type of stop loss.

There is stop loss limit, in which the user specifies a price that the stop
loss is triggered and then a limit price that the order is active to. This is
sometimes called a stop limit order.

Or stop loss market in which only one price is given, this is the price at
which the order translates into a market order. This is sometimes called a
stop market order.

Does this clear things up?

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dragonwriter
> There is stop loss limit, in which the user specifies a price that the stop
> loss is triggered and then a limit price that the order is active to. This
> is sometimes called a stop limit order.

Every professionally-published source I've seen—whether documentation for
particular exchanges supported order types, discussion of the relative merits
and caveats of given order types in trading-oriented outlets, etc. has
consistently referred to this as “stop limit” and reserved “stop loss” for an
order in which a market order is triggered by the stop price.

It looks like the other points of apparent disagreement are connected to this
different understanding of the terminology.

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spcelzrd
Other markets like NYSE and NASDAQ have circuit breakers. If an index declines
by a certain amount, all trading is halted so people can think and sort out
their positions. This doesn't stop a single stock from flash crashing, but
transactions during a flash crash are frequently reversed.

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unstatusthequo
Prevent? I wish I had the foresight to have had buy orders in at $0.11 on the
rise!

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Finnucane
Design a cryptocurrency to have stable value, not speculative-asset value.

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noloblo
how do you do this?

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Finnucane
The answer is left as an exercise for the reader.

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meric
When a large market order come in, if it looks like it will move the price by
more than a certain percentage, warn the seller there isn't enough depth to
support his order.

And circuit breakers.

