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by BigBubbleButt
1506 days ago
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> Except they do. All the time when bubbles pop and other crisis form. Market halts are completely different from what we are discussing. And one of the purposes of market makers is to provide liquidity in extreme cases as you are describing (I'm not saying it works perfectly, but it's one of their reasons for existing). Anyway, I feel like we aren't quite getting our points across to each other. Not blaming you just saying let's agree to disagree. |
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I'm not talking about market halts. I'm saying when all the buy-orders vanish from the marketplace, it results in a "flash crash". Hitting the "sell" button will do really weird things at these times.
After all, a "sell" can only mechanically happen if the market pairs you up with a "buy". That's just how the stock market works. If there's no buyers, you can't sell, even if you're hitting the "sell" button.