Crash trading is the practice of navigating extreme market drops and sudden spikes in volatility with a clear plan, robust risk controls, and...

Crash trading is the practice of navigating extreme market drops and sudden spikes in volatility with a clear plan, robust risk controls, and disciplined execution. Whether triggered by macro shocks, liquidity gaps, or panic selling, crashes create rapid price dislocations that can punish the unprepared and reward traders who manage risk first. On this page, you'll learn what crash trading involves, how to identify key setups, and the tools professionals use to protect capital while seeking opportunity. We cover tactical concepts like volatility filters, stop-loss placement, position sizing, and hedging with options, as well as ways to avoid common traps such as knife-catching and overtrading. You'll also find guidance on building a rules-based playbook for different phases of a sell-off - from early warning signals and breakdowns to capitulation and recovery. Some people use the term for the popular crypto "crash" multiplier game; our focus is real-market strategy and education. If you're ready to trade smarter when markets move fast, start here.

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