Over the past few days, everyone has been asking the same question—Why did the market crash? Panic is in the air, and uncertainty looms over traders and investors alike. Many are quick to blame economic factors like trade wars or tariffs, but the reality is much simpler: it was just another monthly options expiration (OPEX) event.
The Hidden Risk of Leverage
Every month, traders using excessive leverage and options investors face a harsh reality. The market doesn’t favor those who take reckless risks—it punishes them. High-leverage positions create instability, and when the time comes, the system naturally corrects itself. Exchanges don’t manipulate the market; they simply let the rules play out. Those who bet big without proper risk management often find themselves wiped out.
Greed Always Comes at a Cost
There’s an old saying: "Free cheese is only found in a mousetrap." Many traders chase unrealistic gains, thinking they’ve found a shortcut to wealth, but the market has a way of teaching painful lessons. Greed leads to overexposure, and overexposure leads to downfall. If there’s one takeaway from this crash, it’s this: play smart, control your risk, and don’t let greed drive your decisions. The market rewards patience and strategy—not reckless gambling.
