Flash crashes can occur beyond the immediate control of human beings. They may be produced by algorithmic trading programs, triggering one another to sell in a feedback loop. When such programs are managing large volumes of assets, the consequences of such a loop can be dramatic. This can then spill over into the futures market and cause a knock-on cascade of liquidations adding further momentum to the decline. Sometimes, a flash crash can be a result of intentional market manipulation or foul play, where large investors known as “whales” employ methods such as stop hunting or creating fake buy/sell walls.
Investors should be aware that cryptocurrencies are volatile investment instruments that carry a high degree of risk to capital investment. The information in this website is not intended and should not be construed as an offer, solicitation, or recommendation to buy or sell any specific investments or participate in any specific investment (or other) strategy. The products and services outlined on this website may not be suitable for all types of investors. The value of an investment can go down as well as up, and you may not get back the amount you originally invested. You should not invest more than you can afford to lose and should ensure that you fully understand the risks involved. Before trading, please take into consideration your level of experience, investment objectives, and seek independent financial advice if necessary. It is the responsibility of the Client to ascertain whether they are permitted to use the services of MetaU based on the legal requirements in their country of residence. The information on this website is for information purposes only and is subject to change. No part of this website can be reproduced without written permission.