21 Feb 2017
Intraday Trading Made Simple
Intra Day (or within one day) Trading is a popular Forex trading style or strategy. The phrase refers to the practise of opening and closing positions on a single business day, rather than carrying them over to next. The idea being to avoid overnight risk and to treat each day as a new opportunity. There is some debate about closing positions, based purely on a time restraint, regardless of their profitability. But fans of Intraday Trading comment that the opportunity cost of closing out these positions is outweighed by the avoidance of overnight or over weekend risk. It is certainly true that prices can and do move sharply both out of hours or at the start of a session. And it's not uncommon to see overnight gaps in the price charts of stock indices, for example. Critics would argue that experienced traders can take advantage of these opportunities through the correct interpretation of market related data and charts. In the end it's probably a matter of individual preference and attitude to risk. Though some traders sleep better at night without worrying about what's happening to market in a time zone on the other side of the world.