What is the 2010 Flash Crash?

The 2010 Flash Crash is the market crash that occurred on May 6, 2010. During the 2010 crash, leading US stock indices, including the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite Index, tumbled and partially rebounded in less than an hour.

How long did the flash crash last?

The May 6, 2010, flash crash, also known as the crash of 2:45 or simply the flash crash, was a United States trillion-dollar flash crash (a type of stock market crash) which started at 2:32 p.m. EDT and lasted for approximately 36 minutes.

What lessons can we learn from the 2010 Flash Crash?

There are many lessons to be learned from the 2010 flash crash. First, the crash highlighted how the market structure is more complex and interconnected. The crash happened in the equities markets, but it came as a result of large sell orders placed on e-mini contracts on the futures market.

What is a stock market Flash Crash?

A stock market flash crash refers to rapid price declines in an overall market or a stock's price due to a withdrawal of orders. Prices then rebound back to roughly the same level they were before the crash, almost as though it never took place.