When engaging in futures trading in the crypto world without setting a stop loss, the risks are extremely high and can lead to catastrophic consequences. Here are specific analyses and suggestions:
1. Core risks without stop loss
Liquidation under extreme volatility
The cryptocurrency market is highly volatile, and extreme situations (such as black swan events or exchange crashes) can cause prices to drop or surge by over 50% within minutes. If a stop loss is not set, leveraged positions may directly get liquidated (losses exceeding the margin), and one may even owe funds to the exchange (some