Spike in Energy Stocks Tied to Fat Finger, Questions Remain about Commodity Related Flash Event
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Unusual activity in seven oil-related stocks on Tuesday was the result of a "Fat Finger" trade, according reports from the WSJ. The stocks effected included shares of Rowan Cos. (NYSE: RDC), National Oilwell Varco Inc. (NYSE: NOV) and other oil drillers and equipment makers, which jumped between 3% and 9% each around 3:47 p.m. EDT Tuesday. The report does not mention a separate "flash" event in crude oil prices that occurred on Monday.
A fat finger occurs when a trader accidentally enters the wrong size for a transaction, sometimes adding an extra digit.
If the reports about the fat finger trade are correct, it might help end speculation about the unusual activity in the energy sector. However, the main source of speculation remains the unusual activity in crude oil, which is believed to be related to algorithmic trading.
A fat finger occurs when a trader accidentally enters the wrong size for a transaction, sometimes adding an extra digit.
If the reports about the fat finger trade are correct, it might help end speculation about the unusual activity in the energy sector. However, the main source of speculation remains the unusual activity in crude oil, which is believed to be related to algorithmic trading.
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