Flash moves: what do you do in the first minute?

FTC Community TeamStaff96 views

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.

Flash moves: what do you do in the first minute? — bid-ask spread diagram
The bid-ask spread on a currency pair

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
Flash moves: what do you do in the first minute? — risk-reward diagram
A risk-reward ratio of 1 to 2

Background: weekend gaps and bid, ask and slippage.

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