I was reading through the comments on my last post(I have a lot of time now thanks to this lockdown), and I saw that someone asked what a fat finger was in the comments.

I then realised that not everyone here is a trader, and that I will need to break things down a lot more in the future if I decide to use those terms.

So here we go.

A fat finger happens when a whale shorts a coin.

Say I set an order to buy one bitcoin at $100 for some reason, and I just left the order there.

Well, a whale who believes that the price of Bitcoin would really fall, or that just wants some massive profits, decides to short Bitcoin all the way down to $100.

So he hits my order. If the current market price is $7k for example, and the whale had 240BTC, he would have made 6900% or 16560 extra Bitcoin.

And I would also have made 6900% if I sell immediately at market, which would put my equity at $6900. Great stuff.

But you're probably thinking:"This guy is full of shit. Those kinds of trades never happen."

Well, one happened a few days ago. And I'll show you a screenshot right now:

This is a chart of LINK/USDT. The coin usually trades at $2.1, but a whale shorted his almost 1000000 LINK coins for a massive 2 MILLION percent gain. 

For context, if you had invested $10 on that trade, you'd have made 209990. You'd be flipping rich!

Unfortunately, fat fingers don't last long at all. It's only the lucky buyer who sets his order so low that the shorter fills it immediately that gets the fat finger trade.

There you have it guys. An explanation of a fat finger

Thanks for reading.