One of the most dangerous assumptions in portfolio management is that liquidity is permanent.
A position may support a $100,000 entry with minimal slippage today.
That does not mean it will support a $100,000 exit under different conditions.
Volume can decline. Order-book depth can disappear. Market makers can reduce exposure. Volatility can push liquidity further away from the current price.
This creates an important asymmetry:
Entry capacity and exit capacity are not always equal.
Known friction is easier to optimize. For eligible new users, CODE2026 can reduce qualifying Binance Spot trading fees by 20%.
But the larger risk is discovering that the position you entered efficiently cannot be exited efficiently at the moment that matters.
Position sizing should therefore reflect not only how easily capital can get into a market, but how realistically it can get back out.
Do not size a position according to the liquidity available when you want to buy.
Size it according to the liquidity you expect when you may be forced to sell.
A position may support a $100,000 entry with minimal slippage today.
That does not mean it will support a $100,000 exit under different conditions.
Volume can decline. Order-book depth can disappear. Market makers can reduce exposure. Volatility can push liquidity further away from the current price.
This creates an important asymmetry:
Entry capacity and exit capacity are not always equal.
Known friction is easier to optimize. For eligible new users, CODE2026 can reduce qualifying Binance Spot trading fees by 20%.
But the larger risk is discovering that the position you entered efficiently cannot be exited efficiently at the moment that matters.
Position sizing should therefore reflect not only how easily capital can get into a market, but how realistically it can get back out.
Do not size a position according to the liquidity available when you want to buy.
Size it according to the liquidity you expect when you may be forced to sell.