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.

Holding positions over holidays: what's your rule? — bid-ask spread diagram
The bid-ask spread on a currency pair

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
Holding positions over holidays: what's your rule? — risk-reward diagram
A risk-reward ratio of 1 to 2

The weekend gaps guide scales up naturally for holidays.

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