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Risk

Weekend risk (gap risk) — definition & meaning

The danger that price gaps over the weekend past your stop-loss.

Weekend risk is the chance that news over a closed weekend causes a market to reopen far from Friday's close, gapping past your stop-loss.

Because most markets don't trade continuously through the weekend, a stop can't protect you during the gap. Some traders reduce size or close positions before the weekend to manage this.

The information on Trding.io is for general information only and is not investment advice. Trading involves a real risk of losing money, and most retail traders lose. Never trade money you cannot afford to lose.

Related terms

Gap
A jump in price with no trading in between, leaving a blank on the chart.
Stop-loss
A preset order that closes a losing trade to cap your loss.
Swing trading
Holding trades for days to weeks to capture larger price swings.
Slippage
The difference between your expected fill price and the actual one.
Leverage
Borrowed exposure that lets you control a large position with a small deposit.
Margin
The deposit a broker holds to keep a leveraged position open.

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