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No. of Recommendations: 7
I forget on which board there was a recent discussion about stop-loss orders. On the chance it was here ....
Quote:
"On 21 June 2017 at 12:30pm PT, a multimillion dollar market sell was placed on the GDAX ETH-USD order book. This resulted in orders being filled from $317.81 to $224.48, translating into a book slippage of 29.4%. This slippage started a cascade of approximately 800 stop loss orders and margin funding liquidations, causing ETH to temporarily trade as low as $0.10.

Our initial investigations show no indication of wrongdoing or account takeovers. We understand this event can be frustrating for our customers. Our matching engine operated as intended throughout this event and trading with advanced features like margin always carries inherent risk.

We are continuing to conduct a thorough investigation and will keep customers updated with any resulting actions. With that in mind, it is important to note that these trades are final in accordance with our GDAX Trading Rules (Section 3.1). Honoring properly executed orders is critical to maintaining the integrity of an exchange."

From the WSJ article that linked to the above:
"So in other words, they aren’t going to bust trades executed near the bottom (or anywhere else), which is rotten for the sellers and amazing for the buyers who got in on the cheap--about a 3,000-fold return once Ethereum got back to breakeven, which is nice if you can get it. But the main lesson here is that a) cryptocurrencies are speculation and b) don’t use stop-losses in a Wild-West market with no fail-safes.

(Like don’t use them ever, really, because they don’t help, ...)"
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