Gaps — the hidden enemy of your shoulder
If you trade Bitcoin with leverage, the market moves smoothly even at night. But when using TradFi instruments, a phenomenon appears—price gaps (gaps).
The market closed on Friday at one price, and over the weekend a bad piece of news came out. On Monday, the market opens 5% lower.
Why this is dangerous for a leveraged position:
• Your stop-loss won’t trigger at the set price. It will execute at the first available price after the market opens.
• With high leverage, such a gap can lead to instant liquidation.
The risk-management rule here is simple: either significantly reduce your leverage size, or don’t leave speculative positions open over the weekend.
The market doesn’t forgive ignoring its schedule.
#TradFi
If you trade Bitcoin with leverage, the market moves smoothly even at night. But when using TradFi instruments, a phenomenon appears—price gaps (gaps).
The market closed on Friday at one price, and over the weekend a bad piece of news came out. On Monday, the market opens 5% lower.
Why this is dangerous for a leveraged position:
• Your stop-loss won’t trigger at the set price. It will execute at the first available price after the market opens.
• With high leverage, such a gap can lead to instant liquidation.
The risk-management rule here is simple: either significantly reduce your leverage size, or don’t leave speculative positions open over the weekend.
The market doesn’t forgive ignoring its schedule.
#TradFi