Originally posted by ddefina
I'm sure they hedged with the purchase of EFT's or futures in the aftermarket since they are short stocks. They'll unwind it with little risk tomorrow by purchasing back stock and selling the hedge.
BFD! DA'S!:eek:
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What happened at 3:45est???
- Thread starter Dustin
- Start date
BFD! DA'S!:eek:
at 3:45 est today, i sold 1% of my account (building another house).
Originally posted by Josh_B
...NYSE: "As a result of a clerical error at approximately 3:40 p.m. today, Bear Stearns entered orders to sell $4 billion worth of S&P securities. The orders should have been entered as $4 million. All but $622 million of the orders were cancelled prior to execution. The firm has advised the NYSE that the risk from the executed orders has been substantially hedged."...
So original normal position was supposed to be 4 million, but 3 billion 378 million went through., that is 844.5 x normal 4mill position.
How was that substantially hedged? Or was it hedged ahead of time and the "sell" was squaring the position?
Or was it hedged afterwards?
What does "substantially hedged" mean?
Thanks
Josh
no, $622 million went through. All but $622 million of the orders were cancelled prior to execution.
Originally posted by Pabst
I can't believe that shit. Sell program error in the underlyings or not, the market did trade at those levels. I'm sure calls you bought on the cheap are now busts.
Last I heard all of them were against us and the excuse across the board was "bad underlyer" ...
Someday I want to be able to throw away the trades that did not work out ...
Originally posted by metooxx
Last I heard all of them were against us and the excuse across the board was "bad underlyer" ...
Someday I want to be able to throw away the trades that did not work out ...
I'd freak out. It could've just as easy been a bona fide break. You took risk iniating buys. And it's not your fault someone sold them.