If you've been trading for some years, chances are you remember more than one so-called "flash crash". A video by Darwinex (https://www.darwinex.com/). Check out the whole Brokernomics series in one place: https://community.darwinex.com/t/brokernomics-a-darwinexuncut-mini-series/7130

This video is about what flash crashes are and how they come about.

We cover:

- What can trigger a flash crash

- What happens next, after the trigger event

- What's the role of stop orders

- How leverage exacerbates the crash

We also touch upon how liquidity fragmentation relates to flash crashes. We explain liquidity fragmentions with available information about US commission-free broker Robinhood.

To know more about liquidity fragmentation, read this letter by Interactive Broker CEO Thomas Peterffy at https://blog.darwinex.com/wp-content/uploads/2019/10/2018-IBG-AR-dragged.pdf.

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