How does flash price affect the volatility of digital currencies?

1 answers

• Jan 12, 2022 · 3 years ago
  At BYDFi, we have observed that flash prices can significantly impact the volatility of digital currencies. Flash prices often result from sudden market events or large buy/sell orders, which can cause rapid price movements. These price movements can trigger stop-loss orders and margin calls, leading to further price fluctuations. Flash prices can create opportunities for traders who are able to react quickly and take advantage of the price movements. However, they can also pose risks for traders who are caught off guard or unable to react in time. It is important for traders to stay informed about market conditions and have risk management strategies in place to navigate the volatility caused by flash prices.
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