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Flash Crash

A rapid market plunge and recovery within minutes, usually driven by algorithmic trading.

In depth

May 2010 US flash crash saw Dow drop 1,000+ points in minutes. Causes: high-frequency trading, liquidity withdrawal, cascading stop-losses. Regulatory response: circuit breakers, LULD bands, exchange controls.

Frequently asked about Flash Crash

What is Flash Crash?

A rapid market plunge and recovery within minutes, usually driven by algorithmic trading. May 2010 US flash crash saw Dow drop 1,000+ points in minutes. Causes: high-frequency trading, liquidity withdrawal, cascading stop-losses. Regulatory response: circuit breakers, LULD bands, exchange controls.

Why does Flash Crash matter for investors?

In markets, Flash Crash is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.

How is Flash Crash used in practice?

May 2010 US flash crash saw Dow drop 1,000+ points in minutes. Causes: high-frequency trading, liquidity withdrawal, cascading stop-losses.

Recent news mentioning Flash Crash

Six Nifty 500 Stocks Flash Bullish RSI Upswing, Led by Sun Pharma

The Quick Take * Six Nifty 500 stocks, including Sun Pharma and Shyam Metalics, showed bullish RSI upswing on April 27 * All six stocks gained over 6%, pushing their RSI above the key 50 level signalling strengthening momentum * No institutional or analyst commentary cited; signal is technically driven based on RSI crossover pattern * RSI move above 50 is a widely tracked buy signal; traders will watch if momentum sustains in coming sessions * India pharma strength via Sun Pharma could dra

Apr 28, 2026

Related terms

Circuit Breaker

Trading halt triggered when an index or stock moves beyond predefined thresholds.

Liquidity

How easily an asset can be bought or sold without affecting its price.

Volatility

The degree of variation in an asset's price over time.

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