Options and margin day-traders/gamblers. Single day declines like that on index funds are pretty rare (or used to be), so some people may bet against it thinking it’s a “sure thing,” that they wouldn’t lose too much money if it’s a more normal 0.5% decline. Some trades could cause people to lose all their money (and more) on such declines.
Options and margin day-traders/gamblers. Single day declines like that on index funds are pretty rare (or used to be), so some people may bet against it thinking it’s a “sure thing,” that they wouldn’t lose too much money if it’s a more normal 0.5% decline. Some trades could cause people to lose all their money (and more) on such declines.