Why is market crashing

Market crashes are usually driven by sudden macro shifts, liquidity crunches, or cascading liquidations where heavy selling triggers automatic stop-losses and margin calls. When volatility spikes like this, it is easy to panic, but this is exactly why strict risk management matters so much in trading.

If you are trading with a prop firm, sudden market crashes can quickly breach your daily loss limit or trailing drawdown if your position sizing is too large. Always check your firm's news trading rules and maintain disciplined stop-losses to protect your capital.

How do you manage your risk during high-volatility events? Share your strategies below!