Holding positions over holidays: what's your rule?
Holiday closures stretch the weekend gap risk across extra days, thin the liquidity on either side, and change swap schedules. The hold-over-holiday decision should be a rule, not a surprise.
What's yours?
- the positions you'll hold through a long weekend
- how you adjust stops for the gap risk
- the holiday gap you didn't expect
The weekend gaps guide scales up naturally for holidays.
Background: Weekend gaps: why prices jump when the forex market reopens
Currencies stop trading on Friday evening, but the news doesn't. What happens to your positions and stops when the market reopens at a different price.
What is a weekend gap in forex?
A difference between Friday's closing price and the first price when the market reopens on Sunday, caused by news or events over the weekend.
Will my stop-loss protect me from a gap?
Not fully. A standard stop is triggered when the market reopens and fills at the first available price, which can be beyond the stop. Guaranteed stops, where offered, avoid this for a fee.
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