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Both Fed Chairman Bernanke’s remarks yesterday and President Obama’s speech last night about his jobs plan; combined, failed to reassure the market that a solution to the country’s economic woes was at hand, and the …
I don't really understand your question. A gap is a result of the instrument moving post-close, so once it opens, there is a gap. If you want to avoid the gap then clearly you would avoid holding a position past the close, or in the case of trading futures, you can trade out of it in the overnight session.
ES trades Sunday 5pm central to Friday 4:15pm central around the clock.
Yes, ES is indeed continuous.
But it closes on Friday and opens on Sunday, thus a gap is possible if between Friday and Sunday there is significant event/announcement, like events/announcements taking place on Saturday.
If only ES trades on Saturday too (occasionally closes just for system maintenance), then I bet it would be very much continuous in a perfect sense.
You can either employ lower leverage or hedge some of your position on Friday before the close (like buying put options if you're long ES) to minimize the loss. Of course you don't always have to hedge if times are stable, unlike these days where market is so uncertain and volatile, thus to hedge every now and then can be a necessity. You may hedge on Friday before the close if a public announcement is expected on the next day Saturday, like those coming from Greece (Grexit or not).
Thanks BigMike and Dorky. On July 5 there was a huge gap down, it makes sense because it was over the weekend so I will just ake sure to close all positions on Friday.
Can you tell me why there was a gap up on July 9 (Thursday) after 17:15? It went from 2041 at 17:15 and then at 18:05 I see the next candle gap up to almost 2045 and close at 2054.
I just want to be safe, I don't like the idea of having my stops skipped over and being left naked.
Your stops won't be skipped over. They'll be immediately executed. Of course it'll be at a price that's past your stops if there's a gap (and your stop is/was in the middle of that gap), but you won't be left naked.