Was There A Fat Finger Error In The FTSE Yesterday?

Z 09-15 (Second)  2015_6_16


I was trading the FTSE and I was in a trade, nothing unusual. I keep an eye on the prices while I am in a trade and I am never far from my computer. I had been in this particular trade for about 45min. I heard my stop loss hit and I glanced over at the price and the price was nowhere near my stop. So how was I stopped out?

Looking at the chart, there was a strange spike. I say strange, because I was watching the price ( not the chart ) and I never saw the price move to those levels. Going down to a 1 second chart, I indeed saw that the price traded through my stop and my profit target all within 15 seconds !!! Of course the price hit my stop before hitting my profit target of course.

If you enlarge the image above ( by clicking on it ) you will see what I think is a fat fingered error by a trader. The price is going along, then a 500+ lot buy order comes and the market makes a moon shot, sweeping the book. Eleven seconds later a similar sell order comes in sweeping the book the other direction.

I think a trader entered the wrong size. maybe wanted to do 50 and market and sent 500,  Saw what had happened and tried to reverse the trade eleven seconds later. Maybe he/she meant to place the order in the June contract and not the Sep contract.

What do you think ?


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