Henry L Nelson#4

翻訳の表示

How can traders survive liquidity crises in forex?

Liquidity crises arise during flash crashes or sudden withdrawals of market makers. Institutions diversify liquidity providers and maintain capital buffers. Retail traders face widened spreads, slippage, and trade rejections. Benefits: volatile moves sometimes favor positioned traders. Risks: execution breakdowns destroy strategies. Solutions: avoid oversized trades, diversify across brokers, and reduce exposure in illiquid pairs. Liquidity crises show that markets are not always efficient—when liquidity vanishes, only prudent sizing and preparation ensure survival