Kevin_ Johnson#3

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How do traders prepare for black swan events in forex?

Black swans are rare, unpredictable events with massive impact—such as the 2015 CHF shock. Preparation involves risk caps, diversification, and avoiding overleverage. Institutions hedge systemic risks with options and maintain liquidity buffers. Retail traders can reduce exposure before major events and use guaranteed stops when available. Benefits: resilience during chaos. Risks: ignoring black swans leaves accounts vulnerable to overnight wipeouts. The lesson: black swans cannot be predicted, but they can be survived through conservative exposure and robust planning.