Have you ever wondered if you can hold trades over the weekend with FundedNext? It’s a common question among traders, and the answer is not always straightforward. While holding trades over the weekend can offer extended market exposure and the potential to capture weekend price movements, it also comes with significant risks.
The forex market typically closes over the weekend, creating a period of inactivity between Friday’s market close and Sunday’s opening. During this time, no trading occurs, and market conditions can significantly change, leading to “gaps” in price when the market reopens, potentially impacting open positions.
In this blog, we will explore the implications of holding trades over the weekend, the factors to consider, and strategies to manage the associated risks, if FundedNext allows it.
Can You Hold Trades Over the Weekend With Funded Next?
Yes! In the FundedNext Trading Competition, you can hold your trades overnight and over weekends. Unlike other competitions, FundedNext allows you to maintain your positions even outside regular market hours. This flexibility lets you benefit from market movements and seize opportunities beyond typical trading times, whether you’re into short-term trades or strategic positions. No restrictions apply; confidently retain your trades throughout the competition.
Does This Apply To All FundedNext Challenges?
In the latest update written by FundedNext, traders can do weekend holding for the Evaluation, Stellar, and Express Non-Consistency challenges.
Traders in the Express Consistency Challenge can keep trades overnight but cannot hold positions over the weekend. They must close all trades at least 15 minutes before the weekend market closes. If traders don’t close trades within this timeframe, the system will automatically close them. Not closing trades before the weekend close won’t be considered a violation.
How Do You Manage Risk When Holding Trades Over the Weekend?
When keeping trades over the weekend, it’s crucial to handle risks like gap risk and possible market changes. Here are some strategies to manage risk when holding trades over the weekend:
- Set Stop-Loss Orders: Set them at a level that safeguards against big market shifts, especially during weekends. This helps limit potential losses.
- Avoid Holding Open Positions: Steer clear of holding positions overnight or over the weekend. Some traders prefer to close all trades before the end of the trading day. Consider the potential for significant market shifts during this period.
- Use Hedging Techniques: Consider using hedging techniques to help manage gap risk. For example, investors can buy put options to offset potential losses from gap movements.
- Implement the 1% Risk Rule: Stick to risking no more than 1% of your trading capital on a single trade. This helps control the amount of capital at risk and is a common risk management strategy.
By implementing these strategies, traders can better manage the risks associated with holding trades over the weekend.
About FundedNext
- Excellent Trustpilot rating of 4.7/5
- No Maximum Trading Period (Except the Evaluation Model)
- News Trading Allowed (Except Consistency Express Model)
- Overnight & Weekend Holding Allowed
- 15% Profit Split From Demo Phases
- No Commission Fees on Indices
- Professional Trader Dashboard
- Five Unique Funding Programs
- Profit Share of 60% up to 95%
- Balance-based Drawdown
- Leverage up to 1:100
- Swap-free Accounts
- Bi-weekly Payouts
- Scaling Plan
- A Large Variety of Trading Instruments (Forex Pairs, Commodities, Indices)
