After another weekend episode of what seems to be the never ending Grexit saga, the markets have opened with big gaps. Actually, from a trader’s point of view, it’s less important why it happened. What matters is that as long as positions are left open during the weekend, the trader has surrendered control. He is now at the market’s mercy and this can have some really nasty consequences. Here’s how the damage looks like at 21:20 GMT on some of the major forex pairs:
EUR/USD – 1.0980 down from Friday’s close at 1.1171 for a gap of 191 pips
EUR/JPY – 134.60 down from Friday’s close at 138.36 for a gap of 376 pips
USD/JPY – 122.58 down from Friday’s close at 123.85 for a gap of 127 pips
GBP/JPY – 192.20 down from Friday’s close at 195.00 for a gap of 280 pips
EUR/GBP – 0.6999 down from Friday’s close at 0.7094 for a gap of 95 pips
Before leaving an open position over the weekend, always ask yourself : will my trading account be able to handle large adverse moves such as the ones above ?