A futures pump is a situation where the price of an asset in the futures market suddenly and rapidly increases. This can be caused by various factors, such as positive news, announcements, or speculation. Investors hope to profit by taking advantage of such price increases. However, pumps are often accompanied by high risks and can lead to a quick corrective price drop, or to further growth. Therefore, participation in pump on futures requires prudence and awareness. This is both a chance to make good extra money and a chance to lose your assets. Because no one except the people involved in the pump knows to what limit it can continue and whether it will happen again with even greater goals of increasing the price.
An illustrative example is the TRB coin, which made a lot of Xs in the growth from $7 to $80 in a fairly short period of time, and if we take into account the leverage, then in general it is a rocket into space)). And it is not yet clear whether there will be a correction or an accumulation of volume and further pump...
Many people trade without stops with position averaging and often catch liquidation on pampas, not to mention the huge number of stops on positions (shorts). But stoploss is a safeguard against the loss of the entire bank. It is better to lose 50% of the price of the position than the entire dep. Therefore, everyone has their own choice here - either to save the position (especially when the margin there is already large after several averaging and attempts to catch a correction in your direction), or to catch stops until you catch a correction... This everything works in both directions, both long and short. It’s just that no one knows when there will be a reversal on the pump and most are taking positions for the price to fall, and it is possible that there will be further growth)
Futures trading is like swimming in the sea in a storm, not everyone will be able to stay afloat for a long time, but it is very exciting and emotional.
Who got into the pump and how did they get out of this position (short position). Are you trying to save your position, or are you putting your feet up?
