Risk Management in 24/7 Markets

Introduction

Crypto markets operate without interruption. There are no scheduled closures, no overnight pauses, and no clear boundaries between trading sessions. While this continuous access enables flexibility, it also introduces unique challenges for managing risk.

In a 24/7 environment, exposure evolves constantly, often outside traditional monitoring windows. This reality demands a fundamentally different approach to risk management.

Systematic Control in Always-On Trading

In continuous markets, risk does not reset. Positions, correlations, and liquidity conditions change at all hours, and market-moving events can occur without warning. Manual oversight alone is insufficient to manage these dynamics effectively.

Systematic risk controls are essential. Exposure limits, automated monitoring, and predefined safeguards must operate continuously, ensuring consistent enforcement regardless of time or market conditions. In derivatives markets, this is particularly important due to leverage and liquidation mechanisms that can accelerate losses during volatility.

Robust risk frameworks emphasize resilience over prediction. Rather than relying on forecasts, they are designed to function across regimes—accounting for sudden price moves, liquidity shifts, and infrastructure constraints.

In always-on markets, risk management is not a secondary function. It is an integral part of participation itself. The ability to remain controlled and responsive under all conditions ultimately defines long-term sustainability in continuous trading environments.