Is it true that in spot FX, if i leave my stop order punched at Friday close, if the market hits my stop during the weekend, even then the order is executed inspite of holiday?
How do you trade the spot FX? (foreign exchange). Retail is allowed to trade FX only on regulated exchanges, and not on the OTC markets.
The Spot FX market runs as OTC(Over The Counter) market connected all over the world and not on any regulated exchanges. So, Spot FX market Opens with the start of Asia market(2AM on their respective Monday) and Ends with the close of America market (12AM on their respective Friday).
There is nothing like Order getting executed on a holiday. Start of Asia market(2AM on their respective Monday) would be Sunday in USA and other places. Close of America market (12AM on their respective Friday) would be Saturday in Asia.
so basically, if i have my stop order punched, i cannot face any gapping risk, true?
Gap risk would be there if the stop order is not of ‘Guaranteed Stop’ order type. ‘Guaranteed Stop’ order placement is provided by very few OTC brokers ex: IGIndex.
I don’t trade it, just learning it.