A stop-loss can limit planned risk—but it cannot guarantee an exact exit price.

During rapid moves or thin liquidity, an order may execute away from its trigger level. This difference is known as slippage, and it can become significant in volatile crypto markets.

Before placing a stop, understand:

• The difference between stop-market and stop-limit orders
• How order-book depth affects execution
• Why asset volatility influences stop distance
• How leverage magnifies slippage and losses
• Why position size must account for imperfect fills

Stops are one part of a broader risk framework. Position sizing, diversification, liquidity awareness, and predefined invalidation levels are equally important.

This post is educational and does not recommend any specific trading strategy.