Should You Hold a Day Trading Position Overnight? Managing the Gap Risk 🐹

[@ukspreadbetting]

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[@joeirungu5288]

I am an options swing trader and overnight risk is my biggest challenge especially in the current volatile US markets.One cant even sleep well with the overnight risk and I have opted to day trade more and lessen position sizes for trades that I retain overnight.

[@AhmedIbrahim-tl6hi]

thanks a lot you are awesome

[@NDWMONEY]

Gaps can work for and against you....it will balance out !!

[@OGDOKC]

I should've watched this before I started they been taking alot of my money over night smdh🤦🏾‍♂️😭

[@filipg8953]

I only work on Forex. I work with dayly candle bars. Every day at about 15 minutes before the daily close, I eliminate all of my stoplosses, to prevent them being hit because of a growing spread during the first hour of the day. I do leave my fixed Take Profits active. So if there would be a gap at my favour it would be executed counting down some gains because of the higher spread. If it goes against me, I sweat it out, generally price comes back, and when it comes back to my earlier SL level I close the position with the loss that I had planned in the first place. I have lost money because of sudden big spread for about one second driving the spread up to 50 pips without the price going against me. After 1 hour on the new day spreads are normal again and I do put my Stoplosses back on. Could anyone tell me if there is a gap in my favour well above my Take Profit ( in a buy operation) would it be executed at a better price than my TP??? I suppose it would the same way it works with executing Stoplosses. It just hasn´t happened to me yet.

[@ukspreadbetting]

Sorry for the long delay in answering. I was looking at past questions that I haven't answered due to time constraints. That's a good question actually. I want to say they'd fill you at the best next price which would be an improvement if it gapped above your sell limit for example (as indeed they would for a stop) but I guess that depends on your broker. That's certainly the right thing for them to do! Maybe ask them the question?