Re:S&P 500 triggers 15-minute trading halt for the second ti...
by pheug on Thursday March 12, 2020 @01:51PM
(#22559615)
> Who is the counterparty to these trades?
Typically large trading firms, market makers.
> When the market sentiment is negative, the number of these counterparties are narrow and dwindling
That's why his $2600 initial investment made in a much calmer market is now worth $310k :)
For the right price you'll find somebody willing to sell you the insurance you seek. But in a volatile market like today, that price may be way too much for most people.
Typically large trading firms, market makers.
> When the market sentiment is negative, the number of these counterparties are narrow and dwindling
That's why his $2600 initial investment made in a much calmer market is now worth $310k :)
For the right price you'll find somebody willing to sell you the insurance you seek. But in a volatile market like today, that price may be way too much for most people.