Weekend gaps questions

Hi,

I have two questions about the gaps that sometimes appear on the resumption of trading after the weekend.

1. If I am short on a pair with a stop loss of say 90.00 and then there is a gap up to 90.20 on the Monday open, is my stop taken out at 90.00 or 90.20?

and

2. Does anyone play these gaps for potential profits? I know many prefer not to hold over weekends, but this week saw a gap on EURUSD of over 80 pips. If you try to play these, what is your strategy?

Thanks in advance,

Bob

There are no Gaps in reality.
Download a Deutsche Bank FX Demo.
You will notice that markets opens earlier than what you see
on your lets say IBFX MT4 demo.

True Tjpld. But that doesn't help you in your trading.

To come back to the question, if you have a gap of 90,20 and your stop was 90,00, you get taken out at the opening price (maybe not, since there are a zillion people whose stops get taken out, so you might get even a worse price than that) .. which would be at least 0,20 above your initial stop.

I personally trade long term enough so that gaps like that dont bother me at all. Hence, I surely don't actively trade gaps.

I don't have that, but your answer makes sense.

In that case, I guess any stop you have in place will be taken out at the correct value then?

Edited: Woops, I see another post now.

So one can't simply keep a tight stop over the weekend and expect it to be taken at at value if there is a big gaP?

exactly.

Thanks. Back to the drawing board