Automated triggers for large institutions...

C

Cabin111

I think I know the answers, but if you could confirm, it would be nice.

Also, if there are any papers written on the subject...

So a large institution's computer sees a sell order for the general market. It starts to sell. What were some of the triggers?? Was it a drop or rise in the market? Was it a volume trigger?

Here is my real questions that I would like answered...

Are major institution's computers linked to each other?? Is that illegal?

When one triggers massive sell orders, how quickly do other computers respond??

Was thinking of 1987, 2000, 2008...

Thank you for any good responses. Correct responses, you'll get a few claps from me...
 
What do you mean exactly by 'institutions'?

There are many types of market participants:
Buy-side
Market Makers
Prop shops
Retails
Hedge fund
etc.

Market participants computers are not linked the way you think, cause they are all competitors.

As far as how quickly they can respond to market events, we're talking in the range of microseconds (1/1000000 second) for the fastest guys.
 
rb7 said:
What do you mean exactly by 'institutions'?

There are many types of market participants:
Buy-side
Market Makers
Prop shops
Retails
Hedge fund
etc.

Market participants computers are not linked the way you think, cause they are all competitors.

As far as how quickly they can respond to market events, we're talking in the range of microseconds (1/1000000 second) for the fastest guys.
More...

So you are saying a "flash crash" could/can happen before you blink...??
 
%%
ACTUALLY they dont have to be ''linked''
IN some cases they read the same data\
AUG+ SEPT average could be a green candle, especially on an above average, SPY benchmark 2023\
but include , 1987 , 1999,2000-2022=AUG average tend$ to be slightly negative\red .
And throw in the fact what happened to some % good SPY 2023 profits[Slight negative SPY = . > more on SPXL\LOL]
And early month inflows1st week AUG\OOPs.
NO body pulls the trigger the same time, much less exact time ,on a skeet range;
but certain repeating patterns apply with repeating shotguns.
Even a super up year like 1999 in QQQ had 2 monthly topping tail red candles;
[uptrends +]downtrends happen much more than severe panic buys or flash crash.
Good question.
 
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