what happens when we have GAP? | Forex Factory

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what happens when we have GAP?

  • #1
  • First Post: Apr 20, 2010 8:51pm Apr 20, 2010 8:51pm
I try to close all my Friday trades by 10-11 am EST, however, there maybe a situation, where I have to let the trade run over the weekend (hasn't happened yet, but you never know), so what happens, if we have a gap between Friday closing and Sunday opening, and my TP or SL happens to be between closing/opening prices? Will SL or TP be filled at MY preselected price, or at the current market price as soon as the trades are opened? Obviously would be nice to get extra 30-50 pips on top of TP, but just as well your 40-50 SL could turn into a 100 pip loss, in case they fill the orders at market price.
Thanks.
  • #2
  • Apr 21, 2010 2:48am Apr 21, 2010 2:48am
It will be filled at a market price when the markets are open. So, you can lose more than your SL or win more than your TP.
  • #3
  • Apr 21, 2010 3:09am Apr 21, 2010 3:09am
Your account could even become negative if you have an overleveraged position.
  • #4
  • Apr 21, 2010 3:47am Apr 21, 2010 3:47am
Quoting enivid
It will be filled at a market price when the markets are open. So, you can lose more than your SL or win more than your TP.
And the brokers will open as far away as possible to rip off the SLs. They will make the first trade on their own account knowing all their traders positions
  • #5
  • Apr 21, 2010 2:20pm Apr 21, 2010 2:20pm
Ok, I have read your replies but one question comes to my mind and I would be thankful if one can tell me what happened. When we had the gap on EURUSD on 9th april - 11 th april (over the weekend), on a demo account i was short on EURUSD on friday. I had my SL at about 1.3506. When markets open after the weekend I come like everybody else to see it has gapped by many pips. Though my data feed from the demo account I hold tells me it was a Gap where I had my SL at (1.3506) it still closed my orders with my SL being hit. So the question which comes to my mind is why is that. SL i had though it was on the future gap, it worked.
  • #6
  • Apr 21, 2010 6:29pm Apr 21, 2010 6:29pm
Quoting SKohn
Ok, I have read your replies but one question comes to my mind and I would be thankful if one can tell me what happened. When we had the gap on EURUSD on 9th april - 11 th april (over the weekend), on a demo account i was short on EURUSD on friday. I had my SL at about 1.3506. When markets open after the weekend I come like everybody else to see it has gapped by many pips. Though my data feed from the demo account I hold tells me it was a Gap where I had my SL at (1.3506) it still closed my orders with my SL being hit. So the question which comes...
monday price open (gap) somewhere 1.3660 and ya short sl is 1.3506...right..dont see what is the problem? or am i missing something here?

Edited: if u talking bout ya broker closed ya sl right at 1.3506 not like 1.3660 (loss like 100 pts something) then u so lucky hehehe...
  • #7
  • Apr 22, 2010 12:14am Apr 22, 2010 12:14am
Quoting microsuck_36
monday price open (gap) somewhere 1.3660 and ya short sl is 1.3506...right..dont see what is the problem? or am i missing something here?

Edited: if u talking bout ya broker closed ya sl right at 1.3506 not like 1.3660 (loss like 100 pts something) then u so lucky hehehe...
Yes exactly! My broker closed my SL and I didn't loose the extra 100 pips or so was it an accident? :|
  • #8
  • Apr 22, 2010 2:32am Apr 22, 2010 2:32am
Quoting SKohn
Yes exactly! My broker closed my SL and I didn't loose the extra 100 pips or so was it an accident? :|
Maybe that was just luck and maybe your broker has some non-standard order execution model. Or it's just a bucket shop and they don't need to fill the orders at the market prices .
  • #9
  • Apr 22, 2010 3:03am Apr 22, 2010 3:03am
Quoting SKohn
Yes exactly! My broker closed my SL and I didn't loose the extra 100 pips or so was it an accident? :|
Its because it was a demo account, its easy for a broker to guarantee a stop on a demo account. Try this on a real money account and you might not be so lucky.

Also, I had a situation where a market gapped and hit a limit order (FTSE,not forex), initially they just gave the price of my limit, but after a few phone calls and emails they gave me the opening price, which was higher than my limit.
  • #10
  • Last Post: Apr 22, 2010 3:13am Apr 22, 2010 3:13am
thank you
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