What would happen if I had been daytrading and short on SPY on DEC 18 2014 when there was a relatively quick spike? Lets say I had margined my account 3x (as it was daytrading). I don't have the daily data on this computer, but I imagine it was a very quick (seconds?) spike? What would happen if there's a fatfinger effect on SPY?
I'm asking because it seems to me that daytrading something like SPY or TNA with a careful risk strategy is safe from black swan effects, but if I'm leveraged 3x and it fatfingers the wrong way...
I'm asking because it seems to me that daytrading something like SPY or TNA with a careful risk strategy is safe from black swan effects, but if I'm leveraged 3x and it fatfingers the wrong way...