Post
Topic
Board Speculation
Re: Automated orders affecting price dip?
by
Wilhelm
on 23/02/2021, 21:23:03 UTC
Traditional traders use a stop loss at 5-10% below the current price. A downward push of 20% can make all the stop losses pop and that cascades into an avalanche...

Leveraged traders use a multiplier which means they can get in a forced liquidation situation.

Going short can cause liquidation when price rises...

Many more of these killer events...