Absolutely! You’re free to hold onto your positions over the weekend on 1-step-flash and 2-step-pro accounts, (For Instant Funding You're required to have the add-on)
Make sure you understand the potential risks of holding your trades!
Holding trades over the weekend comes with several risks due to the markets being closed for a period, leading to potential gaps when they reopen. Here are the key risks:
What are the risks of holding trades over the weekend?
Price Gaps: The market can open at a significantly different price from where it closed on Friday, leading to larger gains or losses.
Slippage: This occurs when an order is executed at a different price than expected, usually because of market gaps. It can affect both stop-loss and take-profit orders.
News Events: Important news or geopolitical events over the weekend can cause sudden market movements when the market reopens.
Market Sentiment Changes: Changes in market sentiment can happen due to economic developments or political events that can drastically affect prices.
Swap fees: Also known as rollover fees, are charges that traders incur for holding positions overnight. These fees are a result of the interest rate differential between the two currencies in a forex pair.
What should I consider before holding trades over the weekend?
Risk Tolerance: Understand your risk tolerance for potential gaps and slippage.
Market Analysis: Evaluate the likelihood of significant news or events that could impact the market.
Position Size: Consider reducing your position size to limit exposure.
Stop-Loss Orders: Ensure stop-loss orders are placed correctly to manage risk, though be aware they may not execute at the exact price if there’s a gap.
Should I hold trades over the weekend?
The decision to hold trades over the weekend depends on your trading strategy, risk tolerance, and market conditions. If you anticipate significant market movements based on your analysis and are comfortable with the associated risks, you might choose to hold. Otherwise, it might be safer to close positions to avoid unpredictable gaps and slippage.