The Risk That Happens While the Market Is Closed
Forex and CFD markets close for the weekend, but the news does not. Geopolitical events, economic data releases, and unexpected headlines can all happen between Friday's close and Monday's open — and when the market reopens, price can "gap" directly from Friday's level to a materially different Monday level, with no opportunity to exit anywhere in between.
This is why many prop firms have a specific rule about holding positions over the weekend — separate from the daily and max drawdown rules that govern trading during the week.
What "Gap Risk" Actually Looks Like
A position with a stop-loss order placed at a specific price only executes at that price if the market trades through it in a continuous, liquid session. Over a weekend gap, there is no continuous trading — the market can reopen 200 pips below your stop with no fills in between. Your stop-loss becomes meaningless; the position closes (or remains open) at whatever price the market reopens at, not at your intended stop price.
Worked example: $10,000 account, position held into the weekend
A trader holds a position with a $200 planned maximum loss based on a stop-loss order. Over the weekend, unexpected news causes the relevant instrument to gap 3x the normal weekly range at Monday's open. The position's actual loss on reopening is $600 — three times the planned risk — because the stop-loss order had no market to execute in between Friday's close and Monday's open.
This single event could breach both the daily drawdown limit (if the loss registers against Monday) and, depending on severity, threaten the max drawdown floor — from a risk that had nothing to do with any decision made during active trading hours.
Two Common Rule Structures
Auto-close before the weekend. Some firms automatically close all open positions at a set time on Friday, removing weekend gap risk entirely but also removing the trader's ability to hold a position intentionally into the weekend.
Holding allowed with disclosed risk. Other firms permit weekend holding but make clear that gap risk is the trader's responsibility and is measured against the same drawdown rules as any other loss.
Always confirm which model your firm uses — assuming the wrong one is a common, costly mistake.
Practical Weekend Risk Management
Know your firm's exact close time and rule before Friday, not on Friday. If positions auto-close, plan your week's final trades around that cutoff rather than being surprised by it.
If holding is allowed and you choose to hold, reduce size specifically for the weekend. A position sized for normal weekday volatility is not necessarily sized for a worst-case weekend gap.
Treat Monday's reopen as a fresh daily drawdown window, not a continuation of Friday's. If your account gapped against you over the weekend, the daily drawdown limit on Monday still applies in full from Monday's starting balance — it does not give you "extra room" to recover a weekend loss.
How It Works on WICK FUNDED
WICK FUNDED automatically closes open positions before the weekend — positions do not carry gap risk from Friday's close into Monday's open. This removes the worst-case scenario described above entirely: no WICK account can suffer a surprise loss from an event that happens while the market is closed. Re-opening a position in the same direction on Monday starts a fresh daily drawdown window for that day, calculated against Monday's starting balance — covered in more detail in drawdown explained. Full rule set: /rules.
FAQ
Can I hold a position over the weekend on WICK FUNDED? No — WICK FUNDED automatically closes open positions before the weekend, so no position carries gap risk from Friday's close into Monday's open.
What is a "gap" in trading? A gap is when a market reopens at a price materially different from where it closed, with no trading (and no order fills) in between — common over weekends when markets are closed but news and events continue.
Does an auto-close rule mean I can't react to news over the weekend? Correct — once a position is auto-closed, you have no open exposure to react with until the market reopens and you choose to place a new order based on the new conditions.
If my position auto-closes on Friday, does that count as a loss against my drawdown? Any loss realized at the auto-close price counts the same as any other closed-trade loss against your daily and max drawdown for that day — the auto-close itself is not penalized beyond the actual P&L at closing price.
Is weekend auto-close common across prop firms? Policies vary significantly by firm — some auto-close, some allow holding with full gap-risk disclosure, and some restrict only certain instruments. Always check the specific firm's published rules rather than assuming.
Simulated trading evaluation — no real funds are traded. Not financial advice.