Fat Finger Error

AAA

DEFINITION of 'Fat Finger Error'

A human error caused by pressing the wrong key when using a computer to input data. Fat finger errors are often harmless but can sometimes have significant consequences for example, if the wrong number is entered in performing a mathematical calculation.

INVESTOPEDIA EXPLAINS 'Fat Finger Error'

In the aftermath of the May 6, 2010, "flash crash" that caused a significant, rapid and unexpected drop in the Dow, one possible early explanation was fat finger error. The idea was that a trader had entered an order incorrectly, placing the order in the billions rather than the millions. In reality, such trading errors are unlikely because of safeguards implemented by brokerages and exchanges.



RELATED TERMS
  1. Transposition Error

    A simple error of data entry. Transposition errors occur when ...
  2. Bona Fide Error

    An error that was unintentional; an "honest error." If a bona ...
  3. Error Resolution

    A procedure that allows consumers to dispute bookkeeping errors ...
  4. Accounting Control

    Methods and procedures that are implemented by a firm to help ...
  5. Accounting Error

    An error in an accounting item that was not caused intentionally. ...
  6. Gross Cash Recovery (GCR)

    The gross cash colloctions expected over the remaining life of ...
Related Articles
  1. Portfolio Mismanagement: 7 Common Stock ...
    Economics

    Portfolio Mismanagement: 7 Common Stock ...

  2. Tips For Controlling Investment Losses
    Active Trading Fundamentals

    Tips For Controlling Investment Losses

  3. 7 Investing Mistakes And How To Avoid ...
    Investing Basics

    7 Investing Mistakes And How To Avoid ...

  4. 5 Common Mistakes Young Investors Make
    Options & Futures

    5 Common Mistakes Young Investors Make

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center