Those dealing with currency futures will be in for a big hit. 3% may be small for stocks, but it's huge for currency. With leverage, it's gonna hit many people's stop loss levels accidentally. Hopefully, few sold out of panic at lousy price only to see big recovery minutes later. https://www.ft.com/content/aebc146a-e9ed-11e7-bd17-521324c81e23 The euro suffered a sudden Christmas Day plunge on Monday in a drop attributed by analysts to computer-driven selling amid thin trading volumes. The single currency dropped 3 per cent in minutes, according to Bloomberg, although Bloomberg data on Tuesday showed a fall of about 2 per cent. Qi Gao, a Hong Kong-based foreign currency strategist for Scotiabank, pointed to market talk that the sell-off had been driven by “algo [algorithmic] trading”. “[The trading drop] should not be driven by fundamentals,” he said, adding that the intraday movement showed a sharp drop and a quick rebound — a tell-tale sign of a “flash crash”.
We're going to see more of this in the future I'm guessing. Or is this just a new form of stop running under the guise of unpredicatable "flash crashes"?
This one being a real flash crash or not, I think you will find that almost all such moves are in the direction of the trend. So, follow the trend and no sweat!!