This mistake cost traders millions in recent $BTC volatility spikes.
You see the price wick to your stop on the chart and assume you're safe, only to watch your PnL keep tanking as the move continues. That's the kind of pain that turns a small loss into a liquidation.
The reality is a touch of the stop level on your screen does not guarantee the order filled. Your chosen trigger source, whether last price or mark price, often diverges from what the chart displays, especially when books thin out.
Even once activated, that stop order still needs to clear margin requirements and actually match with counterparties in a chaotic market.
We saw similar chaos during the 2022 $ETH crash and those sudden $SOL flushes, where protection turned into extra slippage instead. Crypto does not play by TradFi rules here.
What's your take on using stops in this environment?
#StopLoss #CryptoTrading #RiskManagement
You see the price wick to your stop on the chart and assume you're safe, only to watch your PnL keep tanking as the move continues. That's the kind of pain that turns a small loss into a liquidation.
The reality is a touch of the stop level on your screen does not guarantee the order filled. Your chosen trigger source, whether last price or mark price, often diverges from what the chart displays, especially when books thin out.
Even once activated, that stop order still needs to clear margin requirements and actually match with counterparties in a chaotic market.
We saw similar chaos during the 2022 $ETH crash and those sudden $SOL flushes, where protection turned into extra slippage instead. Crypto does not play by TradFi rules here.
What's your take on using stops in this environment?
#StopLoss #CryptoTrading #RiskManagement