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SMby u/sarah.martinez·5dQuestion

Thoughts on managing overnight risk in Asian equities?

Hey everyone, fairly new here, been trying to get my head around trading Asian markets more consistently. I'm finding the overnight holds a bit nerve-wracking, especially with how quickly sentiment can shift between market closes. I try to manage position sizes, of course, but it still feels like a gamble sometimes waiting for the Tokyo open after the US close, or even HK after Tokyo closes. Does anyone have a particular strategy or framework they use for managing that overnight gap risk? Or is it just something you build a thicker skin for over time and good stop placement?

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1 Comments

ANu/anjali29·5d

Overnight risk is inherent. Beyond position sizing, are you considering a systematic approach to defining your maximum acceptable loss per trade or across your portfolio, particularly with these longer hold times? That might provide a bit more structure than just feeling it out.

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