Skip to content
Centrino Capital

Flash Crash Definition

A flash crash is a very rapid, deep, and often short-lived decline in asset prices, typically followed by a quick recovery.

Back to Glossary

What is a Flash Crash?

Flash crashes can be triggered by factors such as algorithmic trading, low liquidity, or large sudden orders.

They highlight the importance of risk management tools such as stop-loss orders during periods of extreme volatility.

Example of Flash Crash

A currency pair dropping several percent within minutes before quickly recovering would be described as a flash crash.

Start Your Trading Journey

Register, fund, and start trading today, your path to smarter investing begins here.