A stop-loss is a trigger, not a guaranteed exit price.
In fast crypto markets, the gap between your planned loss and actual loss can be wider than expected:
• Stop-market: prioritizes execution, but may fill well below your trigger on a long position.
• Stop-limit: controls your acceptable price, but can remain unfilled as the market falls.
• Thin order books: even a modest order can move through several price levels.
Before entering an altcoin trade, check the spread and order-book depth near your intended size—not just 24-hour volume. Visible liquidity can disappear under stress.
Then stress-test your position: if the exit slips another 2%, is the loss still manageable? Account for fees, too.
The useful question is not just “Where is my stop?” It is “What happens if my exit is worse than planned?”
#Crypto #RiskManagement #TradingEducation #Altcoins
In fast crypto markets, the gap between your planned loss and actual loss can be wider than expected:
• Stop-market: prioritizes execution, but may fill well below your trigger on a long position.
• Stop-limit: controls your acceptable price, but can remain unfilled as the market falls.
• Thin order books: even a modest order can move through several price levels.
Before entering an altcoin trade, check the spread and order-book depth near your intended size—not just 24-hour volume. Visible liquidity can disappear under stress.
Then stress-test your position: if the exit slips another 2%, is the loss still manageable? Account for fees, too.
The useful question is not just “Where is my stop?” It is “What happens if my exit is worse than planned?”
#Crypto #RiskManagement #TradingEducation #Altcoins