Risk Management
When crypto gappers surge: how liquidity shocks distort perp execution
A sudden gap can move perp order flow faster than liquidity can refill, widening spreads, thinning depth, and triggering faster stop-outs. This guide walks through a practical “gap-and-liquidity” workflow: reduce leverage before major risk events, manage sizing with ATR and R, ladder entries around VWAP instead of chasing the first candle, and design exits using TP ladders or trailing stops depending on whether the regime is trending or ranging.
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