ShmoopTube

Where Monty Python meets your 10th grade teacher.

Search Thousands of Shmoop Videos


Investing Videos 424 videos

Finance: What is Devaluation?
1 Views

What is Devaluation? The process by which a nation deliberately lowers the value of its currency relative to other international currencies is call...

Finance: What is the Advance Decline Ratio?
14 Views

What is the Advance Decline Ratio? The advance decline ratio is used to determine how the market performed on a given day. It does this by comparin...

Finance: What is speculation?
6 Views

What is speculation? Speculation refers to a high risk, high reward scenario in investing. When an investor engages in a speculation, they take on...

See All

Finance: What is the Fast Market Rule? 11 Views


Share It!


Description:

What is the Fast Market Rule? The fast market rule is something that is used in the U.K. to keep the market under control when any sort of crash happens. It allows big traders and firms to trade outside of quoted trading ranges so that huge changes in price do not have as big of an effect.

Language:
English Language

Transcript

00:00

Finance a la shmoop what is the fast market rule? okay things get crazy here [Two guys riding a rollercoaster]

00:08

whoa and every now and then there's a leap well blimey, that's how things work

00:14

here on the London Stock Exchange.....

00:18

the fast market rule accommodates the chaos by giving brokers and other market

00:23

makers the freedom to trade outside the ranges published to the exchange why is

00:28

this needed? well because we live in a world of robots and artificial

00:33

intelligence and fat thumbs that hit the wrong keys and hackers from Russia China

00:38

and Mars all of whom can profit from chaotic disruption if you want to see

00:44

this phenomenon in its finest form well check out Jack Nicholson in the original [Man stood next to Jack Nicholson as Joker]

00:48

Batman movie and that was the best one so the logic revolves around the fact

00:51

that today even with all our massive computing power we would still rather

00:56

rely on human beings when you know the congressman hits the fan then assume

01:01

that a computer will be clever enough to figure out what's wrong quickly you know

01:06

when the world is on a collision course with chaos all over the place fast [Meteor strikes Earth]

01:10

market rule, humans over robots...

Related Videos

GED Social Studies 1.1 Civics and Government
39794 Views

GED Social Studies 1.1 Civics and Government

Fake News
11938 Views

How do you tell fake news from real news?

Finance: What is Bankruptcy?
260 Views

What is bankruptcy? Deadbeats who can't pay their bills declare bankruptcy. Either they borrowed too much money, or the business fell apart. They t...

Finance: What is a Dividend?
1777 Views

What's a dividend? At will, the board of directors can pay a dividend on common stock. Usually, that payout is some percentage less than 100 of ear...

Finance: How Are Risks and Rewards Related?
589 Views

How are risk and reward related? Take more risk, expect more reward. A lottery ticket might be worth a billion dollars, but if the odds are one in...