Handling the Gaps

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neuester Beitrag: 23.08.06 18:28
eröffnet am: 21.08.06 10:19 von: Shouta Anzahl Beiträge: 4
neuester Beitrag: 23.08.06 18:28 von: Spider.Mike Leser gesamt: 274
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21.08.06 10:19

0 Postings, 6746 Tage ShoutaHandling the Gaps

Hello all,

The Future on German bunds just opened with an .20+ gap this morning after the last weekend.

What do you do against this gaps? Is anyone willing to give an idea?


Thanks for your time!

Kind regards,

Shouta  

21.08.06 16:52

50 Postings, 7019 Tage taishiGaps

Hey Shouta,

20 ticks don't sound that bad, do they? The only thing to get rid of them is to close the position before trading suspends. Especially before weekend it is an appropriate procedure, as the time seems long enough for big gaps.

Another idea would be adding options to hedge the position. But this requires extra brain power and experience which I don't have with FGBL.

Greetings
taishi

 

21.08.06 17:34

1 Posting, 6748 Tage Tom_BClosing eod

Hey Shouta,

I'm closing most of my positions end of day, that's why I sleep well and tight at night... hehe. Think 'bout that.


cya

Tom  

23.08.06 18:28

0 Postings, 6746 Tage Spider.MikeEnd of day flat

Hi Shouta,

I also close most of my short term positions end of day.

However, a relevant share of my trades are longer term, so there is no chance to avoid gaps. I think you have to handle it. Sometimes they are against you, sometimes with you. At broad markets gaps shouldn't kill ya.

But of course you have to take this into account in your risk and money management.


Cheers,
Mike  

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