Triggers for the Next Big Flash Crash | Forex Factory

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Triggers for the Next Big Flash Crash

  • #1
  • First Post: Jan 19, 2015 7:19pm Jan 19, 2015 7:19pm
Another big flash crash seems quite unlikely to me, but what are potential trigger events for the next one (where liquidity dries up and stop loss orders aren't filled, e.g. CHF pairs on 15/1/15)?

Is there any other way a central bank could trigger a big flash crash besides pegging and unpegging their currency?

These obvious events may have warnings several days/months/years beforehand:
A comet hitting any of the major currency's country
A super volcano erupting in any of the major currency's country
A nuclear attack
An almost complete alternative to oil is invented and accepted by consumers (good bye USD as reserve currency?)
  • #2
  • Jan 19, 2015 7:40pm Jan 19, 2015 7:40pm
If any of those events occurred I think trading is the least of our worries.
  • #3
  • Jan 20, 2015 4:32am Jan 20, 2015 4:32am
Quoting scottik187
If any of those events occurred I think trading is the least of our worries.
  • #4
  • Jan 20, 2015 6:55am Jan 20, 2015 6:55am
Credit, treasuries, stocks, derivatives, housing, commodities....



Take your pick. (Though an asteroid would certainly count as a 'flash crash').

Big moves down are not characterised by a sudden spike in liquidity, but a sudden lack of it.
"Risk comes from not knowing what you're doing." - Warren Buffett
  • #5
  • Edited 1:56pm Jan 20, 2015 1:43pm | Edited 1:56pm
Quoting Spili
Credit, treasuries, stocks, derivatives, housing, commodities.... Take your pick.
Wouldn't it take something insanely out of the ordinary in any of these sectors (except for treasuries maybe) to cause a giant spikey fall in one of the major currency pairs? So unprecedented that the probability of the triggering event occurring would be virtually nil (lower than what occurred on 15/1/15)?
  • #6
  • Last Post: Jan 20, 2019 10:46am Jan 20, 2019 10:46am
Quoting Stinky
Another big flash crash seems quite unlikely to me, but what are potential trigger events for the next one (where liquidity dries up and stop loss orders aren't filled, e.g. CHF pairs on 15/1/15)? Is there any other way a central bank could trigger a big flash crash besides pegging and unpegging their currency? These obvious events may have warnings several days/months/years beforehand: A comet hitting any of the major currency's country A super volcano erupting in any of the major currency's country A nuclear attack An almost complete alternative...
No obvious trigger necessary:
https://nononsenseforex.com/uncatego...sh-crash-2019/
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