May 07, 2010
Decimals are Important

It appears that yesterdays market chaos was caused by a trader entering "b" for billions instead of "m" for millions. These sorts of errors are possible often because it never occurs to the developers that someone would be that dumb. Unfortunately, they all too often are.

Posted by scott at May 07, 2010 07:01 AM

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I find that explanation of the market bunjee jump unbelievable. have you, in ANY financial application you have ever used, been prompted to enter a numeric value, using english? if they wanted to sell 212,456 shares, did they have to type "two hundred twelve thousand, four hundred fifty-six"? duh, no, they'll be entering the number.

now, perhaps they were using a trading application that was prompting for a number which was interpreted to be thousands of shares, and the user didn't realize that.

or could just have been the immanent collapse of the European economy...

Posted by: mrfred on May 7, 2010 07:54 AM

Maybe it was a display system or something along those lines. Then all those on the floor see the huge number displayed and go into a lemming-like panic.

Posted by: Ron ap Rhys on May 7, 2010 08:39 AM

Considering that we're talking about a trading process that divides a dollar into SIXTEEN increments, it's entirely understandable that someone's finger could hit "b" instead of "m" when they're typing fast.

Posted by: DensityDuck on May 7, 2010 01:00 PM
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