Tuesday, February 27, 2007

Market Selloff and NYSE Trading Collars

Dramatic down days in the market are intriguing for several reasons. First of all because it gives us a glimpse into the psychology of the markets and how interconnected markets from around the world have become. Second of all it gives us a little bit of information about some of the structures of the markets that we usually don't even think about.

For those of you who are reading articles about why the market dropped off today you may have come across the term "trading collars." Check out the rules the NYSE has in place to prevent dramatic declines and dramatic increases in the markets:


These rules are in place to keep the markets orderly. The trading collars were implemented around 3PM this afternoon. No doubt today was a hectic day on Wall St. Today is precisely the kind of day that reminds me why I have no interest in being a trader!

Posted by The La Jolla Guy at 12:26 PM

Labels: , ,

Digg!

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)

Disclaimer

The content on this site is provided as general information only and should not be taken as investment advice. All site content, including advertisements, shall not be construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) who may or may not have a position in any company or advertiser referenced above. Any action that you take as a result of information, analysis, or advertisement on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.