Forex Weekend Gap
weekend forex price gaps?
If I am correct, the forex markets are closed for the weekends right? but the movement of the currencies still continue meaning that the closing prices on Friday would most likely be different compared to the opening prices on Monday or late Sunday right? Since the market moves during the weekend this would form gaps, my questions are
-how does the market close this gap once it opens and how long does it usually take the market before it closes this gap?
-Will the currencies jump from closing price to opening price or will it move slowly and how quickly does it take to do this?
-And what would the usual differences be in terms of the closing and opening prices.
Just for the sake of curiosity, does the stock market experience the same gap formation or does it always open from where it last closed?
Thank you.
Yes there are gaps in all markets that have a period when they’re not trading. However I’ll point you to Oanda.com, check out their forex demo, you will see a constant forex feed that even stays live on the weekend, whenever you see that gap on other forex brokers you can see what happened on Oanda. It could very well be a spike but the chart rarely has gaps since their forex quotes are there all the time.
You can actually buy currency on the weekends, so if you believe EUR/USD will open higher on sunday because of news on Saturday you can go to Oanda and buy Eur/Usd, of course spreads are a bit higher, 10 pips for EUR/USD on weekends.
Weekend Technical Analysis – The Markets Nail Key Gap Fill Friday, Look For These Levels, Plays!
