The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to be talking about how to manage a fat finger trade. What is a fat finger trade? A fat finger trade is basically this idea that you just mistype something on a keyboard or your finger just kind of slipped or you hit two zeros instead of having one zero and so, you ended up trading 100 contracts and wanted to trade 10 contracts or you just incorrectly typed the ticker symbol or miscalculated something, any combination of that, but you basically just entered a trade you did not mean to enter. Now, look. I've done this all the time and in fact, the reason I’m doing this podcast is because I just did this like literally about a week ago where I exited a trade that I should not have exited, but I just didn't catch it. I didn't think through the process. I thought I was looking at one thing. I meant to look at something else and I executed a closing trade on something that we had literally just entered th