What is a fat fingered error?

A fat fingered error is a computer-related input error which takes place on the financial markets, meaning that a buy or sell order is placed for far more than intended, for the incorrect contract or stock or with any other feasible input errors.

Where have you heard about fat fingered errors?

In 2014 a Japanese trader mistakenly placed orders for than $600 billion US dollars (£370 billion) in the most successful Japanese countries. They were cancelled in time but if they had not been, the order would have exceeded the value of the economy of Sweden.

What you need to know about fat fingered errors.

Fat fingered errors have only occurred since the use of computers for trading, which replaced the open outcry method in the 1980s. Before computerised trading, these sorts of mistakes were known as “out trades”. These errors are rather common on the financial market. Fat fingered errors can be caught before they reach the market if the trading house has an automated system within its infrastructure. They are also more often cancelled before they can be completed if the number is very large and exceeds the actual amount of stock on the market.

Find out more about fat fingered errors.

To learn how fat fingered errors are possible, read about electronic computer networks.