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The Weekend

Discussion in 'Beginners Bootcamp' started by Oatmeal, Jul 16, 2009.

  1. Oatmeal

    Oatmeal Recruit

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    How much does the market move over the weekend? (I’m new otherwise I would know). I am asking this question because a certain broker will not allow a stop loss of more than 50 pips to be held over the weekend. If one was allowing for a possible drawdown of 100 pips before moving into profit could it be possible for 50 pips of this drawdown to occur over the weekend? Maybe a stupid question but I’d rather be stupid by asking a stupid question than be stupid by choosing a <enter an appropiate description here> broker. And it’s a lot easier and more efficient to ask the question here than to go and look at a lot of historical charts.

    What is the definition of “the weekend” as far as the Forex market is concerned?
     
  2. Pharaoh

    Pharaoh Colonel

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    First - "The Weekend". The world forex market shuts down at 5 pm New York Time on Friday and opens at 5 pm New York time on Sunday. Individual brokers may end the week an hour or two earlier or start the week and hour or two later.

    There's no real limit to the weekend gap. Usually, it's not huge, but one or two surprise bits of economic news can change things and there's nothing you can do about it.

    Most brokers won't honor your stoploss over a weekend and will close you at the "best available price" when the brokerage resumes trading on Sunday. Of course, if price gaps in your direction, they probably will honor your take profit to the pip even if price gaps well beyond it.

    Until you get to know your broker's policies very well, I recommend against keeping trades open over the weekend. This will protect you from the possibility of unpleasant surprises.
     
  3. Nancy Cheah

    Nancy Cheah Sergeant

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    I don't have any open positions whatsoever over the weekend because I feel that it's rather unsafe to do so.
     
    #3 Nancy Cheah, Jul 16, 2009
    Last edited: Sep 5, 2011
  4. nyfxtrade.com

    nyfxtrade.com Private

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    I completely agree here with nancy you can't keep open positions over the weekend unless you are really LONG term trader! Once on a GBP pair I saw a gap of 172 pips that was I belive about 3years ago!

     
  5. Nancy Cheah

    Nancy Cheah Sergeant

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    Or maybe if a terrorist attack happens during a particular weekend and the movement shall definitely be blown out of proportions.
     
    #5 Nancy Cheah, Jul 19, 2009
    Last edited: Sep 5, 2011
  6. nyfxtrade.com

    nyfxtrade.com Private

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    Like july 2007 with GBP pairs!


     
  7. Nancy Cheah

    Nancy Cheah Sergeant

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    Or maybe like September 11th.
     
    #7 Nancy Cheah, Jul 20, 2009
    Last edited: Sep 5, 2011
  8. Cesil

    Cesil Private, 1st Class

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    I wouldn't classify myself as a long term trader & I hold plenty of positions over the weekends. Hasn't done me any harm, gap is often over 50pips & thin liquidity gives a wide spread when the market reopens anyway. If you (can afford to) hold on well into the asian/european session it normally comes back to where it left off on friday close anyway.
     

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