New here - Question on managing overnight gaps in forex

asked by u/tunde95 · 8d · 1 answers

Been trading forex for about a year, mostly day trading $EURUSD, $GBPUSD. Still feeling out the edges of my risk management. My biggest struggle is holding positions overnight and dealing with the potential for significant gaps, especially around major news releases or Monday opens. It feels like even with stops, a gap can blow right through it and lead to a much larger loss than anticipated, eating into the gains from several successful trades.

For those of you who regularly hold forex positions across market closes, how do you practically manage this specific gap risk? Are you just accepting it as part of the game and sizing down significantly, or are there specific strategies beyond wider stops that you've found effective?

Join the full discussion

Top answers

  • u/thao_pratama· 1 pts· 8d

    It's a common challenge. For overnight gaps, especially with high-impact news, some traders scale back position size significantly or close positions entirely before the market closes for the weekend or ahead of major economic releases. Have you considered using guaranteed stop-loss orders if your broker offers them, even if they come with a wider spread?

Related questions