⚡ What is a Flash Crash Market? (Rapid Price Collapse)
🔹 Market Definition:
A Flash Crash Market is an event in which a sudden and very rapid price drop occurs within a very short period, often without a clear economic cause.
🔹 Market Characteristics:
✅ A very rapid price drop, which may reach dozens of percent in a matter of minutes.
✅ Often followed by a rapid rebound if the movement is caused by a technical glitch or automated trading.
✅ Causes panic among traders.
🔹 Trading Strategies:
1. Avoid random entry: Don't try to buy immediately after a drop before understanding the cause of the crash.
2. Use a stop-loss: Always have a protective plan in place to protect your capital.
3. Monitor before making a decision: Some drops reflect a buying opportunity after confirming price stability.
🔹 ⚠️ Tips:
This is a very high-risk market, suitable only for experienced traders.
Understanding the reason behind the rapid decline is important to avoid large losses.
✨ Conclusion:
The Flash Crash market represents both an opportunity and a significant risk at the same time, and requires extreme caution and discipline when dealing with it.
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