Leaving trades over the weekend is very risky

by Marc Walton | Jul 6, 2023 | Forex Analysis

Entry

Hi everyone,

I am traveling around Europe at the moment. I thought to make a short video to explain why leaving trades over the weekend is very risky.

As I showed you in the video, most of the pairs at the market open have very wide spreads. Especially the cross pairs such as GBPAUD, GBPNZD, EURNZD etc. Now if you had left a forward order on Friday closer to the entry and the market opens with a gap and a widespread, you could be taken out. But worse it could also jump your stop resulting in a more significant loss.

Hence why its best to close the positions by Friday if your trade is in profit. You can always look to re-enter when the market opens the week after if it is in the same area. It’s a different case if your order is over 100 pips in profit and you have already moved your stop making it risk-free.

You also need to be aware that spreads widen when the market closes and opens daily, which is at 10 pm here in the UK. A reason for the widening of forex spreads at 10 pm is the lack of market liquidity. Liquidity refers to the ease with which a trader can buy or sell a currency pair. When there is a lack of liquidity, it becomes difficult for traders to execute their trades at the desired price, which leads to wider spreads. The lack of liquidity at 10 pm can be attributed to the fact that most banks and financial institutions in Europe are closed, which reduces the amount of money flowing into the market. Spreads are usually wider in the Asian session due to this reason.

Why do forex spreads widen at 10pm?

Kind reagrds,

Marc

None of the Forex Mentor Pro team nor its owners (expressly including but not limited to Marc Walton), officers, directors, employees, subsidiaries, affiliates, licensors, service providers, content providers and agents (all collectively hereinafter referred to as “Forex Mentor Pro ”) are financial advisers and nothing contained herein is intended to be or to be construed as financial advice

Forex Mentor Pro is not an investment advisory service, is not an investment adviser, and does not provide personalized financial advice or act as a financial advisor.

Forex Mentor Pro exists for educational purposes only, and the materials and information contained herein are for general informational purposes only. None of the information provided in the website is intended as investment, tax, accounting or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement, recommendation or sponsorship of any company, security, or fund. The information on the website should not be relied upon for purposes of transacting securities or other investments.

You hereby understand and agree that Forex Mentor Pro, does not offer or provide tax, legal or investment advice and that you are responsible for consulting tax, legal, or financial professionals before acting on any information provided herein. “This report is not intended as a promotion of any particular products or investments and neither Forex Mentor Pro group nor any of its officers, directors, employees or representatives, in any way recommends or endorses any company, product, investment or opportunity which may be discussed herein.

The education and information presented herein is intended for a general audience and does not purport to be, nor should it be construed as, specific advice tailored to any individual. You are encouraged to discuss any opportunities with your attorney, accountant, financial professional or other advisor.

Your use of the information contained herein is at your own risk. The content is provided ‘as is’ and without warranties of any kind, either expressed or implied. Forex Mentor Pro disclaims all warranties, including, but not limited to, any implied warranties of merchantability, fitness for a particular purpose, title, or non-infringement. Forex Mentor Pro does not promise or guarantee any income or particular result from your use of the information contained herein. Forex Mentor Pro.com assumes no liability or responsibility for errors or omissions in the information contained herein.

Under no circumstances will Forex Mentor Pro be liable for any loss or damage caused by your reliance on the information contained herein. It is your responsibility to evaluate the accuracy, completeness or usefulness of any information, opinion, advice or other content contained herein. Please seek the advice of professionals, as appropriate, regarding the evaluation of any specific information, opinion, advice or other content.

Marc Walton, owner of Forex Mentor Pro, communicates content and editorials on this site. Statements regarding his, or other contributors’ “commitment” to share their personal investing strategies should not be construed or interpreted to require the disclosure of investments and strategies that are personal in nature, part of their estate or tax planning or immaterial to the scope and nature of the Forex Mentor Pro philosophy.

All reasonable care has been taken that information published on Forex Mentor Pro website is correct at the time of publishing. However, Forex Mentor Pro does not guarantee the accuracy of the information published on its website nor can it be held responsible for any errors or omissions.