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Execution Algorithms

Execution Algorithms

Execution Algorithms

In 2010, a single mutual fund's algorithm tried to liquidate 75,000 E-mini S&P 500 futures contracts in 20 minutes. It ignored price and focused only on volume. The result: it sold into its own market impact, triggering a feedback loop that erased nearly $1 trillion in equity value in minutes. You know it as the Flash Crash.

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