$Q moved above the 0.075 level.
Let’s use this data to talk about round-number levels.
A large number of stop-loss orders are usually placed around these levels. If the price breaks through, those stops can be triggered all at once, often causing volatility to spike.
Volatility tends to increase around these levels, so leveraged positions need more room. Stops placed too close to a round number can easily get swept.
Calculating your position size based on where you place your stop is much more reliable than just guessing.
Stay rational, and don’t get carried away.
Let’s use this data to talk about round-number levels.
A large number of stop-loss orders are usually placed around these levels. If the price breaks through, those stops can be triggered all at once, often causing volatility to spike.
Volatility tends to increase around these levels, so leveraged positions need more room. Stops placed too close to a round number can easily get swept.
Calculating your position size based on where you place your stop is much more reliable than just guessing.
Stay rational, and don’t get carried away.