Weekend risk management: what's your Friday checklist?
Two days of headlines can gap your positions at the Sunday open. Weekend risk management is a Friday discipline: review open trades, know the weekend calendar, and decide what you're willing to hold.
What's on your checklist?
- the positions you're comfortable holding
- the weekend events that change your mind
- the Monday gap that made you adopt the checklist
The weekend gaps guide explains the mechanics behind the checklist.
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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