Rollercoaster

Hedge funds have reduced mid-session trading in favour of the more animated last-minute dance.

This is because, like traditional traders, they are drawn to the larger volumes and greater volatility that the index funds create, and the chance to profit. But slipping from juicy profits to heavy losses can sometimes be easy. On October 10, the Nasdaq fell from a loss of 2.5 per cent to a 4 per cent loss in the last hour of trading — making for its worst day in two years.