Unforeseen Chaos in High-Frequency Trading

Exploring the rapid and high-stakes world of high-frequency trading where a company's accidental trades led to a staggering $440 million loss in just minutes. The chapter also discusses the flash crash of 2010, shedding light on the havoc caused by algorithm errors and the ensuing lack of market liquidity. Through a detailed analysis of algorithmic trading strategies and the risks involved, it calls for regulatory measures like circuit breakers to mitigate potential market disruptions.