DJ Stoxx 50 (FSTX) March 09 Contract Price Spike

Discussion in 'Index Futures' started by pjones2012, Mar 5, 2009.

  1. I was looking at the March 2009 European DJ STOXX 50 Futures (FSTX) chart. On February 26, 2009 (at 3:55 PM) on the 1 minute charts the contract was trading at 1764.

    Then on the consecutive minute bar (which shows a date of February 27, 2009 (at 2:01 AM)) on the chart the price spiked to 2262 and 2250 in two consecutive minutes before returning to 1762 on the following minute.

    This is a 500 point move in the matter of 1 - 2 minutes.

    I have a couple questions:

    1. What are potential causes of a spike like this?

    2. What happens to everyone who was say short or long the contract at this time.

    3. Did the shorts get stopped out or worse yet have a 500 point loss?

    4. If a long sold their contract did they just pocket a 500 point profit.

    5. How can a trader protect themselves against an event like this? If a hedge of some sort - if yes - for example?

    Any feedback or thoughts regarding trading futures and experiencing spikes is greatly appreciated.

    Thanks