flash crash

Sudden market collapse

A flash crash is a sudden, severe drop in market prices that recovers almost as quickly as it fell—typically within minutes.

These crashes are usually triggered by automated trading algorithms interacting in unexpected ways, creating cascading sell orders.

The most famous occurred in May 2010, when the Dow Jones dropped nearly 1,000 points in minutes before rebounding.

Regulators implemented circuit breakers after the flash crash.

Related

algorithm · trading · stocks · collapse · volatility · panic · selloff · seconds · recovery · liquidity · glitch · freefall · price drop · circuit breaker · high-frequency · meltdown · spiral · rebound

Categories
Opposites
market movement direction

flash crashmelt-up

Sudden price surge

short squeeze · rip · price spike · buying frenzy · moon shot

temporal character of decline

flash crashgradual decline

Slow downward trend

death by a thousand cuts

market stability

flash crashmarket stability

Consistent economic conditions

steady state · price stability · equilibrium

Family

flash, crash, flashed, flashing, flashy, flasher, flashes, crashed, crashing

Familiarity
Top 500,000
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Used worldwide · Negative · Rated G