What are the potential risks associated with orthogonal trading in the digital asset market?

3 answers

• muhammad nazirulOct 15, 2021 · 4 years ago
  Orthogonal trading in the digital asset market can be risky due to its complex nature. Traders should be cautious as it involves simultaneous trading across multiple exchanges, which can expose them to higher volatility and liquidity risks. Additionally, the use of automated trading algorithms can lead to potential technical glitches and system failures, resulting in financial losses. It is crucial for traders to thoroughly understand the risks associated with orthogonal trading and implement proper risk management strategies to mitigate these risks.
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• Stef the ComposerDec 09, 2020 · 5 years ago
  Orthogonal trading in the digital asset market can be quite risky. Traders need to be aware of the potential dangers and drawbacks that come with it. The main risk is the increased exposure to market volatility and liquidity risks. Since orthogonal trading involves trading on multiple exchanges simultaneously, any sudden price movements or lack of liquidity in one exchange can have a significant impact on the overall trading strategy. Traders should also be cautious of technical glitches and system failures that can occur when using automated trading algorithms. Proper risk management and thorough research are essential to navigate these risks effectively.
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• kimberlyjznewmanevMar 15, 2024 · 2 years ago
  Orthogonal trading in the digital asset market carries certain risks that traders should consider. One of the main risks is the higher volatility and liquidity risks associated with trading on multiple exchanges simultaneously. This can lead to potential losses if the market moves against the trader's positions. Additionally, the use of automated trading algorithms introduces the risk of technical glitches and system failures, which can result in financial losses. It is important for traders to carefully assess these risks and implement appropriate risk management strategies to protect their investments.
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