I am trading a TF system that sometimes holds long over the weekend.
Is there an increased risk in holding something while the markets are closed?
My broker suggests that even if some catastrophic world event takes place on a Saturday, that the stops will still (more or less) work when thee market opens since the market can't move while it's closed. Does that sound accurate?
In general, there can be always an event where the market "gaps" up or down, if something significant enough happens overnight or over the weekend. If the event is noteworthy enough, the gap can be wider and, depending where the stop is, it may be bypassed altogether.
So the market does not move while it's closed but it can gap up or down at the next open.
That is the reason I personally do not hold anything overnight.
The following user says Thank You to xplorer for this post: