I have tried to write in detail whats the back story of the DOW crash and after several attempts i saw no other way but to refer my self to a person who dedicate his blog to this scenarios. I have been following him for a long time and would recommend to any of you to do the same. In the other words I shall leave it to the pro.

In the world that we live in now and every one following the pack, much speculations have been flooding the main stream media and most of it only touch the surface of the issue, but lets not forget that behind most of the problems there is always a winner. A company that has hundreds of computer programmers and the best of them to work on a design of the financial “melt down” . Its not the traders who went into a panic mode when all theis goes down

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( Original file from http://www.zerohedge.com

Imagine you had a stop-loss order in on Accenture for $36. Average investors always put in stop-loss orders to prevent them from suffering a catastrophic loss on a stock. Regular investors, however, do not have computer algorithms that can buy in sell the same stock every millisecond.

An average investor in Accenture literally had his stock stolen from himself today. The stock dropped from from $41.09 to $.04 – triggering your stop-loss order at $.04. After all, the stock didn’t take a normal drop from $41.09 to $38.52 to $36. Instead, it fell off a cliff to…

…Four cents.

One of Goldman Sachs’ algorithm picked up your shares for four pennies in the second that your stop-loss order was triggered. That the stock immediately returned to it’s market value means nothing. You shares are gone.

Goldman wins, you lose. I’ll give you ten-to-one odds that Goldman Sachs made over $100 million today. Want to take the other side of the bet?

….. full post here