15 January 2015: the Swiss franc day
Understand why a stop cannot protect you when a market jumps, and why negative balance protection exists.
Module 25 of 26, When it goes wrong: real blowups. Lesson 3 of 6, about 16 minutes.
The takeaway
A stop protects you from the market you can trade on, but not from a gap that jumps price past it without trading. Size for the gap, not the stop.
This page is a public summary. The full lesson has the worked examples, an interactive exercise and a short quiz, and sits in the course. Lessons 1 and 2 of Module 1 are free and the rest need a pass.
Open this lesson in the course
General information only. It doesn't consider your objectives, finances or needs. Tickfloor holds no financial services licence and never places trades.
Concepts in this lesson
Previous lesson
Next lesson
Related lessons
- Debt, gearing and who gets paid first
- Owning a coin versus a perpetual contract
- Working out your liquidation price before you open
- The full cost of a leveraged crypto trade, and the ‘free yield’ trap