Market makers paused trading during last week’s flash crash, potentially adding to the volatility. Here’s what happened.
💡 DMK Insight
Last week's flash crash serves as a stark reminder of the delicate balance in financial markets. When market makers hit the pause button, it can create a perfect storm of uncertainty, amplifying volatility rather than stabilizing it. This incident underscores the importance of liquidity and the role of market makers in maintaining order; without them, traders can find themselves in a wild west scenario where prices swing wildly. As we navigate these turbulent waters, it's crucial for investors to stay vigilant and prepared for unexpected market shifts.
📮 Takeaway
Keep an eye on liquidity trends; they can signal potential volatility spikes ahead.






