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Aus 200 / Trading after Hour in IG


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47 minutes ago, MITH said:

 Is it bad to open and keep the position on after main trading hour.

Hi @MITH

What are the risks of after-hours trading?

The risks of pre-market, post-market and weekend trading include:

  • Lower liquidity: many market participants prefer to trade during the main session when prices are generally more stable. This means there may be fewer active participants to fill the other side of trades out of hours.
  • Higher volatility: lower liquidity can result in more dramatic swings in prices, which can be good or bad – depending on your individual risk appetite.
  • Wider spreads: the difference between the buy and sell price, known as the spread, can widen when volatility rises or liquidity falls.


You can manage your risk using stops and limits, which automatically close your trade when the price hits a pre-determined level. Guaranteed stops are the best way to cap risk, because these always close your trade at the exact level you specify – even if the market moves quickly or ‘gaps’. A small premium is payable if a guaranteed stop is triggered.

 

All the best - MongiIG

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depends how far away/ or close  you set the stop loss. shop around the options market to see if you can buy a cheap call or put which balances (similar to a stop loss) to cover your AUS200 bet.

Edited by eastside
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