Flash Crash: A Trading Savant, a Global Manhunt, and the Most Mysterious Market Crash in History By Liam Vaughan

Best Edition Flash Crash: A Trading Savant, a Global Manhunt, and the Most Mysterious Market Crash in History with FREE PDF EDITION Download Now!

Name: Best Edition Flash Crash: A Trading Savant, a Global Manhunt, and the Most Mysterious Market Crash in History with FREE PDF EDITION
Rating: 9.7 (7493 reviews)
Author: Liam Vaughan

Kindle Store,Kindle eBooks,Biographies & Memoirs Flash Crash: A Trading Savant, a Global Manhunt, and the Most Mysterious Market Crash in History Liam Vaughan

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Best Edition Flash Crash: A Trading Savant, a Global Manhunt, and the Most Mysterious Market Crash in History with FREE PDF EDITION Download Now!

"[An] extraordinary tale"—Wall Street Journal"Compelling [and] engaging"—Financial Times"Magnificently detailed yet pacy...Think Trading Places meets Wall Street"—Sunday Times (UK)The riveting story of a trading prodigy who amassed $70 million from his childhood bedroom—until the US government accused him of helping trigger an unprecedented market collapseOn May 6, 2010, financial markets around the world tumbled simultaneously and without warning. In the span of five minutes, a trillion dollars of valuation was lost. The Flash Crash, as it became known, represented what was then the fastest drop in market history. When share values rebounded less than half an hour later, experts around the globe were left perplexed. What had they just witnessed?Navinder Singh Sarao hardly seemed like a man who would shake the world's financial markets to their core. Raised in a working-class neighborhood in West London, Nav was a preternaturally gifted trader who played the markets like a computer game. By the age of thirty, he had left behind London's "trading arcades," working instead out of his childhood home. For years the money poured in. But when lightning-fast electronic traders infiltrated markets and started eating into his profits, Nav built a system of his own to fight back. It worked—until 2015, when the FBI arrived at his door. Depending on whom you ask, Sarao was a scourge, a symbol of a financial system run horribly amok, or a folk hero who took on the tyranny of Wall Street and the high-frequency traders.A real-life financial thriller, Flash Crash uncovers the remarkable, behind-the-scenes narrative of a mystifying market crash, a globe-spanning investigation into international fraud, and a man at the center of them both.

At this time of writing, The Ebook Flash Crash: A Trading Savant, a Global Manhunt, and the Most Mysterious Market Crash in History has garnered 8 customer reviews with rating of 5 out of 5 stars. Not a bad score at all as if you round it off, it’s actually a perfect TEN already. From the looks of that rating, we can say the Ebook is Good TO READ!

Best Edition Flash Crash: A Trading Savant, a Global Manhunt, and the Most Mysterious Market Crash in History with FREE PDF EDITION!

I read and listened to Liam Vaughan’s account of Navinder Singh Sarao (Nav) journey as a trader to becoming a felon. Once on my Kindle the second time on Audible. It is a fascinating story with ominous over tones. It is well written and is well worth reading.Nav, whose parents are Sikh immigrants to Great Britain lived in Hounslow a working class neighborhood located under the flight pattern or Heathrow airport. There he lived out his life in a second floor bed room in his parents’ house. He attended a local college and completed a bachelor‘s degree in computer science.He had been a gamer in his younger years and was an avid follower of the soccer leagues. After school he applied and was hired, after proficiency testing, by IDT a company that taught candidates the principles of trading in the futures markets in exchange for a share of their profits and charges for desk rent and trade fees.Nav worked there for a few years until he became a top trader. Dissatisfied with the financial arrangements he decided to trade from his home computer situated in his bedroom. He led a monkish life and never indulged himself in the substantial profits pf his trading.He was a day trader and closed out his positions at the end of his trading day. His biggest concern was that many of his trading opportunities were constantly being snapped up by High Frequency Trading (HFT) organizations using computer trading programs driven by Artificial Intelligence Algorithms designed by Ph.Ds. in computer science, mathematics or similar disciplines. Their trades were made in nanoseconds with connections directly into the Chicago Mercantile Exchange (CME) the largest futures trading exchange in the World.The HFT computer trading programs had decimated human traders and Nav was the last of a dying breed of human day traders specializing in brief trades. The CME in 2012 registered nine trillion bid/offers a second, ninety percent of which were cancelled before being filled. Some entered and cancelled in micro secondsNav in the 2000 ought’s bought an off the shelf trading program and with the help of independent programmers modified the program to compete with the HFT algorithm’s system of offer/ bids and then withdrawing them before they could be filled. Thus confusing other HFTs and humans as to which direction the market was trending. This was called spoofing and was not specifically prohibited by regulation or statute although arguably it could fall under the rubric of market manipulation on May 6, 2010. Later on July 21. 2010 under the Dodd-Frank Act it was specifically prohibited. Proof of spoofing requires intent which is difficult to prove and the practice is still rampant to this day. Passage of the new regulations didn’t prevent another flash crash in 2015Nav was placing hundreds of thousands of offer/bids at a time positioning them so they would never be filled. His actual filled trades were done manually using a mouse. After he determined which way the market was moving reinforced by his programed offers/ bids.Nav is described a s highly focused individual on the Autistic Spectrum using very slow connection speeds in a market dominated by HFTs with the best equipment and the highest connection speeds.A whistle blower tracked Nav’s activities and submitted them to the Commodities Futures Trading Commission (CFTC). A Whistle blower, if correct, receives a bounty if the CFTC recovers money on the information given. The CFTC is a government agency limited to fines, penalties etc. on a civil basis.Nav’s trading practices were proposed as a being connected to the Flash Crash of May 6, 2010 when the market in general including equities as well a futures dipped drastically and shortly recovered in thirty six minutes causing massive losses.What caused this crash is debatable but connecting it to a small trader operating out of his bedroom in a London suburb certain made it a sexier high profile case from the prosecution standpoint.However the best the prosecution could do was to hire an academic from a respected institution to opine that Nav contributed to the flash crash. However an opinion by a hired expert is always one by an advocate for the side who hired him or her. Some are fiendishly clever and persuasive. The experts who were contacted and were not supportive of Nav having a role in the May 6, 2010 crash are not revealed which is usual by the side seeking them as experts.However the Department of Justice (DOJ) became involved, probably by the idea of linking Nav to the Flash Crash made it a much more high profile case. The DOJ brought with it many more investigative resources and penalties including jail sentences and pretrial seizure of assets.Nav almost exclusively traded in e-mini futures a derivative of the S&P 500, one the most frequently traded futures at the CME. To conclude his trading had a causative effect on the crash of the entire market is a long reach if not absurd. There still is no agreement as to what caused the crash among market professionals and experts to this day.Why Nav was singled out can only be explained that he was the low hanging fruit while other more likely culprits went on siphoning off billions of dollars at little risk and little benefit to the public pension funds, college endowments and other entries which support the public interest.If Nav was treated fairly in this case it would have been heard as a CFTC case and he would have received and admonition and perhaps a fine. By linking him to the flash crash brought a more draconian result And no real benefit to the public as we still don’t know the cause or causes of the crash and how to prevent them in the future.

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Best Edition Flash Crash: A Trading Savant, a Global Manhunt, and the Most Mysterious Market Crash in History with FREE PDF EDITION Download Now!

Best Edition Flash Crash: A Trading Savant, a Global Manhunt, and the Most Mysterious Market Crash in History with FREE PDF EDITION!

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Best Edition Flash Crash: A Trading Savant, a Global Manhunt, and the Most Mysterious Market Crash in History with FREE PDF EDITION Download Now!

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Best Edition Flash Crash: A Trading Savant, a Global Manhunt, and the Most Mysterious Market Crash in History with FREE PDF EDITION Download Now!

Best Edition Flash Crash: A Trading Savant, a Global Manhunt, and the Most Mysterious Market Crash in History with FREE PDF EDITION!

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