Fear of Flash Crash

Tuesday, June 27, 2023

income

t f B! P L

 Around 7:30 Japan time on January 3, 2019, the USD/JPY plummeted from the upper 108 yen to 105 yen.

If the price drops momentarily as described above, the transaction price and the loss cut price will diverge and may fall significantly below the forced loss cut.


Japanese Forex brokers hold a position at this time and the margin is insufficient, so the additional money collected is called margin margin. This means that you will have to pay the merchant more money than you paid.


Such events occur frequently and are difficult to predict.


However, this phenomenon occurred during a time zone (7 to 8 o'clock) when foreign exchange transactions were not often conducted. This time period is called "the time when the witch appears", and it is easy to occur.


For this reason, we recommend that you do short-term (buy in one day → settlement) and do not carry over the position over the day.


Forex brokers outside Japan are recommended because they are safe because there is no margin call.

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自己紹介

A 40-year-old office worker living in Japan. While searching for a way to live in Japan, where taxes and prices are rising, he encounters FX. Before the Lehman Brothers shock, the yen tended to depreciate and he could easily earn money, but he lost all his investment due to the Lehman Brothers shock. Since then, I'm focused on how to survive and make money rather than win or lose.

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