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European market crashed due to the mistake of a trader of Citigroup, investors lost billions of dollars

One mistake drowned investors’ billions of dollars

Due to this decline, the market cap of stocks in the markets at one time decreased by $ 315 billion. However, in the next few minutes, the market was able to cover most of its losses.

On Monday the major markets of European countries (stock market) was registered due to a trader’s mistake. Today the American bank Citigroup (Citi group) According to the bank, one of its traders had made a big mistake while filling the deal, due to which there was a flash crash in the markets of Europe, flash crash refers to the sharp fall in the market in a very short time. Stocks in the markets at one time due to this decline (stock trading)’s market cap decreased to $315 billion. However, in the next few minutes, the market was able to cover most of its losses.

what was the matter

In Monday’s trading, there was a sudden sharp decline in the European markets in the morning. The most damage was seen in the markets of the Nordic region and its effect reached the European markets. The fall was so sharp that the Stockholm 30 index fell by 8 percent within just 5 minutes. However, within 5 minutes the index recovered and the fall came down to close to 1 percent. Along with the crash, Nasdaq Stockholm had feared that a market participant had made a big mistake, which had an impact on the markets. Nasdaq Stockholm made it clear that no deal will be canceled i.e. if an investor has sold his shares during the flash crash, he will have to suffer a loss.

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what happens flash crash

Flash Crash refers to a short period of time in the market. There can be many reasons behind this, if you look at the history of the stock market, then the flash crash has happened due to rumors and even the wrong tweet by hacking the news website. The flash crash that happened in the European markets on Monday is known as Fat Finger in the markets, that is, filling something else by mistake while filling the deal. In August 2012, due to a computer fault of Knight Capital, there was a sharp fall in the US markets, for which Knight Capital had to suffer a loss of $ 44 million. At the same time, in October 2013, due to a flash crash in the Singapore market, the prices of some stocks had fallen by 87 percent, after which rules were made to avoid this situation.

Source: www.tv9hindi.com

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Shehnaz Ali
Shehnaz is a Corporate Communications Expert by profession and writer by Passion. She has experience of many years in the same. Her educational background in Mass communication has given her a broad base from which to approach many topics. She enjoys writing about Public relations, Corporate communications, travel, entrepreneurship, insurance, and finance among others.
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