Gouged by the gap | Forex Factory

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Gouged by the gap

  • #1
  • First Post: Mar 18, 2013 12:03am Mar 18, 2013 12:03am
Hello All,

Being new to Forex myself I thought I would share this with other noobs, most of whom probably know about this but there maybe be some like me that didn't.

I had been trading a demo account and managed to double it in just under 3 weeks.

So I created a live account and had just about doubled that in a week, except I made the mistake of leaving it open over the weekend.

I know when I trade that there is a warning about the "gap" but I was of the belief that if I had a stop in that it would all be good and at worst I would lose a few pips. haha, Well how wrong was I.

Anyway, I didn't lose it all but am now back to where I started and the lesson learned for me is that a gap can smash you up. So from now on I will be closing my positions a little sooner although I am told that gaps do not happen that often on Forex.

Dusted myself off and ready to start again with just over my original deposit.

#Bringiton
  • #2
  • Mar 18, 2013 3:22am Mar 18, 2013 3:22am
Quoting manilaguy
Hello All,

Being new to Forex myself I thought I would share this with other noobs, most of whom probably know about this but there maybe be some like me that didn't.

I had been trading a demo account and managed to double it in just under 3 weeks.

So I created a live account and had just about doubled that in a week, except I made the mistake of leaving it open over the weekend.

I know when I trade that there is a warning about the "gap" but I was of the belief that if I had a stop in that it would all be good and at worst I...
well Manilaguy: there was some news in the weekend in the eurozone that had quite a big impact.
Your should be very cautious when leaving trades open over the weekend. Or at least have your stop
right.
  • #3
  • Mar 18, 2013 3:30am Mar 18, 2013 3:30am
  •  FerruFx
  • Joined May 2007 | Status: MT4/MT5 EAs/Indicators/Alerts coder | 6,542 Posts | Online Now
Quoting manilaguy
Anyway, I didn't lose it all but am now back to where I started ...
With a TP with the same value and news in the other side, you would have made the same amount you lost
MT4/MT5 EAs/Indicators/Alerts coder
  • #4
  • Mar 18, 2013 6:51am Mar 18, 2013 6:51am
Quoting Danny Maina
well Manilaguy: there was some news in the weekend in the eurozone that had quite a big impact.
Your should be very cautious when leaving trades open over the weekend. Or at least have your stop
right.
Yeah, I had a stop, I was in front a few hundred dollars and amended the order prior to the news, but apparently this was all to no avail.

I called my broker and he said that there is nothing that can be done when there is a gap.

Is he telling the truth?
  • #5
  • Mar 18, 2013 10:58pm Mar 18, 2013 10:58pm
Quoting manilaguy

Is he telling the truth?
yes. think about it. can a stop (which is basically a market order) execute if their was no trading at the price the stop was set at.
In trading, there is no bullshit. You either make money or you don't.
  • #6
  • Mar 18, 2013 11:43pm Mar 18, 2013 11:43pm
Quoting mrgreen
yes. think about it. can a stop (which is basically a market order) execute if their was no trading at the price the stop was set at.
It's not that there was no trading, it's that the broker wasn't open to execute your orders. And even had they been open for some strange reason, there would be massive spreads and a high likelihood of slippage as liquidity is virtually nothing with the big banks closed. Popular belief here seems to be that the market itself closes for the weekend but that isn't actually true.
  • #7
  • Last Post: Mar 20, 2013 5:28pm Mar 20, 2013 5:28pm
anything can happen !!!
it is old traders quote and We should remember when allow exposure on weekend.
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