Saturday 10th December 2016

Resource Clips


Posts tagged ‘united kingdom’

Infographic: Explaining the October flash crash in the British pound

October 25th, 2016

Text by Jeff Desjardins | graphic by Top 10 Forex VPS | posted with permission of Visual Capitalist | October 25, 2016

We all know that software is eating the world. For better or worse, that statement applies to the financial world as well. It is said today that 75% of all financial market volume is automated, though there are lower and higher estimates out there depending on the report.

The bottom line is that algorithmic trading is the dominant market player—and this has benefits and drawbacks for average investors. On the upside, markets are less volatile and presumably more rational because they are driven by computers instead of fallible humans.

On the other hand? Sometimes algos just go rogue and do something unpredictable.

When the British pound flash-crashed earlier this month, it was exactly this latter thing that happened.

The following infographic from Top 10 Forex VPS shares a play-by-play breakdown of how the British pound crashed a whopping 8% in just two minutes.

It’s interesting because it helps give a sense of how the piping works behind these trading algorithms. It’s also a cautionary tale of algos gone wild, showing how market momentum can be swung in a particular direction even without your average market participants being involved.

 

Explaining the October flash crash in the British pound

 

In the aftermath of Brexit, the British pound has subsequently morphed into a “political” currency that seems to get most of its trading action based on commentary and speculation about the country’s eventual withdrawal from the EU.

On October 6, François Hollande said that the UK must “pay the price” for Brexit. Trading algorithms reacted to this news that they deemed to be negative, and it triggered a GBP selloff. Once a massive knockout option was opened and a certain price broke, it triggered a number of automated stop-loss sellers.

After a few other algorithms kicked in, the British pound went from $1.26 to $1.1491 in a matter of just two minutes in USD terms. That’s an 8% slide in a globally significant currency.

Just 30 minutes later, the pound recovered to more normal trading levels.

The flash crash was just that—temporary. However, this does raise the question: what could have happened in a more extreme case of algos gone wild?

Graphic by Top 10 Forex VPS | posted with permission of Visual Capitalist.

Thrifty Scots invent method of extracting gold from discarded electronics

August 31st, 2016

by Greg Klein | August 31, 2016

From Scotland comes a technological breakthrough perhaps inspired by Scottish frugality. The University of Edinburgh announced a new method that could help unlock up to 7% of the world’s gold. That’s the amount estimated to reside in “electrical waste”—old cellphones, TVs, computers and other digital devices. Boffins call the new process considerably more efficient and environmentally friendly than previous efforts.

Thrifty Scots invent method of extracting gold from discarded electronics

Some 300 tonnes of gold go into electronics each year, according to the scientists.

The new method first involves placing printed circuit boards in a mild acid to dissolve the metals. An “oily liquid containing the team’s chemical compound” then separates the gold from other metals.

But the potential for the new process alone isn’t clear. Researchers merely say it “could aid the development of methods for large-scale recovery of gold and other precious metals from waste electronics.”

The university described the study as one of many staff and student-led initiatives “to promote the so-called circular economy, which encourages reuse of materials and greater resource efficiency.”

Saves money too.

August 9th, 2016

Charts suggest silver bull market is consolidating Streetwise Reports
Potash producers hopeful of recovery Industrial Minerals
Looking for yield in all the wrong places Stockhouse
De Beers’ $520-million diamond sale defies summer slowdown NAI 500
JPMorgan Chase analyst says central banks rigged markets after Brexit GoldSeek
Five Quebec gold juniors that could be acquired soon SmallCapPower
Living in uncertain times: An updated picture of country risk Equities.com
Lithium contract prices begin Q3 move towards high China levels Benchmark Mineral Intelligence
Limestone: Commodity overview Geology for Investors
Lithium in Las Vegas: A closer look at the lithium bull The Disruptive Discoveries Journal

August 5th, 2016

Potash producers hopeful of recovery Industrial Minerals
Looking for yield in all the wrong places Stockhouse
De Beers’ $520-million diamond sale defies summer slowdown NAI 500
JPMorgan Chase analyst says central banks rigged markets after Brexit GoldSeek
Five Quebec gold juniors that could be acquired soon SmallCapPower
Living in uncertain times: An updated picture of country risk Equities.com
What experts predict for the new silver bull market Streetwise Reports
Lithium contract prices begin Q3 move towards high China levels Benchmark Mineral Intelligence
Limestone: Commodity overview Geology for Investors
Lithium in Las Vegas: A closer look at the lithium bull The Disruptive Discoveries Journal

August 4th, 2016

De Beers’ $520-million diamond sale defies summer slowdown NAI 500
JPMorgan Chase analyst says central banks rigged markets after Brexit GoldSeek
Five Quebec gold juniors that could be acquired soon SmallCapPower
Living in uncertain times: An updated picture of country risk Equities.com
What experts predict for the new silver bull market Streetwise Reports
Lithium contract prices begin Q3 move towards high China levels Benchmark Mineral Intelligence
Canada welcomes move towards ratification of EU trade deal Industrial Minerals
A classic case of failed socialism: What’s next after Brexit? Stockhouse
Limestone: Commodity overview Geology for Investors
Lithium in Las Vegas: A closer look at the lithium bull The Disruptive Discoveries Journal

August 3rd, 2016

JPMorgan Chase analyst says central banks rigged markets after Brexit GoldSeek
Five Quebec gold juniors that could be acquired soon SmallCapPower
Living in uncertain times: An updated picture of country risk Equities.com
What experts predict for the new silver bull market Streetwise Reports
Lithium contract prices begin Q3 move towards high China levels Benchmark Mineral Intelligence
Nickel near eight-month high as metals gain on stimulus speculation NAI 500
Canada welcomes move towards ratification of EU trade deal Industrial Minerals
A classic case of failed socialism: What’s next after Brexit? Stockhouse
Limestone: Commodity overview Geology for Investors
Lithium in Las Vegas: A closer look at the lithium bull The Disruptive Discoveries Journal

July 29th, 2016

Five Quebec gold juniors that could be acquired soon SmallCapPower
Brexit post-mortem GoldSeek
Living in uncertain times: An updated picture of country risk Equities.com
What experts predict for the new silver bull market Streetwise Reports
Lithium contract prices begin Q3 move towards high China levels Benchmark Mineral Intelligence
Nickel near eight-month high as metals gain on stimulus speculation NAI 500
Canada welcomes move towards ratification of EU trade deal Industrial Minerals
A classic case of failed socialism: What’s next after Brexit? Stockhouse
Limestone: Commodity overview Geology for Investors
Lithium in Las Vegas: A closer look at the lithium bull The Disruptive Discoveries Journal

July 28th, 2016

What experts predict for the new silver bull market Streetwise Reports
Lithium contract prices begin Q3 move towards high China levels Benchmark Mineral Intelligence
Lies, fraud and obstruction: A look back at Enron’s downfall Equities.com
SWOT analysis: Is there increased political risk building into the gold market? GoldSeek
Nickel near eight-month high as metals gain on stimulus speculation NAI 500
Canada welcomes move towards ratification of EU trade deal Industrial Minerals
Gold junior climbs on assays SmallCapPower
A classic case of failed socialism: What’s next after Brexit? Stockhouse
Limestone: Commodity overview Geology for Investors
Lithium in Las Vegas: A closer look at the lithium bull The Disruptive Discoveries Journal

July 26th, 2016

Lithium contract prices begin Q3 move towards high China levels Benchmark Mineral Intelligence
Lies, fraud and obstruction: A look back at Enron’s downfall Equities.com
SWOT analysis: Is there increased political risk building into the gold market? GoldSeek
Nickel near eight-month high as metals gain on stimulus speculation NAI 500
New stock market highs correlate to $57 trillion in printed global currency units Streetwise Reports
Canada welcomes move towards ratification of EU trade deal Industrial Minerals
Gold junior climbs on assays SmallCapPower
A classic case of failed socialism: What’s next after Brexit? Stockhouse
Limestone: Commodity overview Geology for Investors
Lithium in Las Vegas: A closer look at the lithium bull The Disruptive Discoveries Journal

July 25th, 2016

SWOT analysis: Is there increased political risk building into the gold market? GoldSeek
EU to tackle China on critical mineral trade Benchmark Mineral Intelligence
Remembering the dotcom bubble burst Equities.com
Nickel near eight-month high as metals gain on stimulus speculation NAI 500
New stock market highs correlate to $57 trillion in printed global currency units Streetwise Reports
Canada welcomes move towards ratification of EU trade deal Industrial Minerals
Gold junior climbs on assays SmallCapPower
A classic case of failed socialism: What’s next after Brexit? Stockhouse
Limestone: Commodity overview Geology for Investors
Lithium in Las Vegas: A closer look at the lithium bull The Disruptive Discoveries Journal