It seems like every time the market plunges I see an article of explanation on a news site with a photo or two of people in uniform at the exchange with their head in their hands. They look like they're having an awful time. Are they not allowed to go short? If not, do they rationally expect the market to keep going higher everyday? Did they position too large? I'm just kind of confused.

I'd bet that their lunch is stuck in traffic. Hell hath no fury like a trader unfed

Itchymoku 

It seems like every time the market plunges I see an article of explanation on a news site with a photo or two of people in uniform at the exchange with their head in their hands. They look like they're having an awful time. Are they not allowed to go short? If not, do they rationally expect the market to keep going higher everyday? Did they position too large? I'm just kind of confused.

If they are big players or have big positions in the market they may not be able to liquidate or reverse position before market drops. Depending on how big the position is it can take some real time to unwind it without causing the market to drop or rise and there needs to be a party willing to take the other side at the price they are after.

If they are trading on behalf of big clients they have to try and keep within a certain range for price executions. Depending on if the entry/exit is in the red or black from the mean and how many deviations away from it, will affect the commissions they can get for the executions. Get bad fills and clients go elsewhere in future.

It could also be the plunge protection teams that are trying to halt the slide and not gaining any ground.

That's my understanding anyway.

Okay, I'll now open this thread up and periodically post pictures of what I'm referring to. I encourage other people to do the same.

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