Flash moves: what do you do in the first minute?
Flash crashes and spikes happen in thin liquidity without warning — sterling's 2016 crash was the template (guide). The first minute decides whether you're a spectator or a victim.
What's your protocol?
- how you recognise a flash move versus normal volatility
- whether you trade it, fade it or stay flat
- how your stops are placed for outlier minutes
Background: weekend gaps and bid, ask and slippage.
Background: Bid, ask and slippage: why your order fills at a different price
Why buy trades open at one price and close at another, why a stop can trigger when the chart never touched it, and how slippage happens.
Why did my stop-loss trigger when the price on the chart didn't reach it?
Charts usually show the bid price, but a sell position's stop is triggered by the ask. If the spread widened, the ask could have touched your stop while the bid line stayed away from it.
What is slippage?
The difference between the price you expected and the price your order was filled at. It is most common in fast or thin markets, such as around news releases.
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