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Thu Aug 2, 2012, 04:18 PM

SELL, SELL, SELL for the love of God, SELL ...



Knight Capital Says Trading Glitch Cost It $440 Million

$10 million a minute.

That’s about how much the trading problem that set off turmoil on the stock market on Wednesday morning is already costing the trading firm.

The Knight Capital Group announced on Thursday that it lost $440 million when it sold all the stocks it accidentally bought Wednesday morning because a computer glitch.

Documents: Knight Capital's statement
Runaway Trades Spread Turmoil Across Wall St.

The losses are threatening the stability of the firm, which is based in Jersey City. In its statement, Knight Capital said its capital base, the money it uses to conduct its business, had been “severely impacted” by the event and that it was “actively pursuing its strategic and financing alternatives.”

The losses are greater than the company’s revenue in the second quarter of this year, when it brought in $289 million.

http://dealbook.nytimes.com/2012/08/02/knight-capital-says-trading-mishap-cost-it-440-million/?hp

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And you thought it only happens in the movies .....

8 replies, 1266 views

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Reply SELL, SELL, SELL for the love of God, SELL ... (Original post)
MindMover Aug 2012 OP
Enrique Aug 2012 #1
MindMover Aug 2012 #2
BadgerKid Aug 2012 #5
Atman Aug 2012 #3
LiberalAndProud Aug 2012 #4
orwell Aug 2012 #6
bemildred Aug 2012 #7
JHB Aug 2012 #8

Response to MindMover (Original post)

Thu Aug 2, 2012, 04:23 PM

1. if they lost that much

does that mean that someone else gained that much?

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Response to Enrique (Reply #1)

Thu Aug 2, 2012, 04:25 PM

2. Well, depending upon which balance sheet you are using ....

the answer is generally yes, however, it could be more or less depending ....

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Response to Enrique (Reply #1)

Thu Aug 2, 2012, 04:33 PM

5. I read one poster claiming

to be an acquaintance of hedge fund traders who made several 100K's. Interesting, but hearsay regardless.

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Response to MindMover (Original post)

Thu Aug 2, 2012, 04:26 PM

3. Awww....how sad for you, Knight.

Imagine how average Americans feel when they lose their entire savings and pensions and 401ks because of your bullshit scams?

Cry me a fucking river.

.

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Response to MindMover (Original post)

Thu Aug 2, 2012, 04:26 PM

4. Is this cause for mourning or celebration?

I guess I'm concerned that the Market might punish bad trading decisions, since it's the nature and function of the beast.

It was an accident!

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Response to MindMover (Original post)

Thu Aug 2, 2012, 04:59 PM

6. Good riddance...

...these jerks have screwed more people than a porn star at a Republiclown convention.

They are market makers who dabble in many OTC securities where they manipulate markets with the size they trade.

I hope they go buy-buy..

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Response to MindMover (Original post)

Thu Aug 2, 2012, 05:39 PM

7. It takes a computer to really screw things up. nt

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Response to MindMover (Original post)

Thu Aug 2, 2012, 05:47 PM

8. Not to be all tinfoil hatty, but this IS Wall Street wheeler dealers we're talking about...

...has it been verified that it was indeed a computer glitch, and not a "glitch" as cover for some shuffling of money into some well-connected pockets?

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