Is Gap trading allowed?
Gap Trading is not allowed.
Gap Trading refers to opening trades shortly before a market closes in order to exploit potential price gaps after it reopens. This practice is strictly prohibited.
Not allowed:
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Opening trades within 2 hours of market close when the market will remain closed for 2 or more hours.
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Placing trades ahead of major news, earnings announcements, or global events that are likely to cause price gaps.
Example:
Opening a position 30 minutes before Friday’s market close with the intent to profit from a Monday market gap is prohibited.
Important:
Any trades opened less than 2 hours before a market’s closing time with the intention of exploiting expected price gaps will be considered a malicious practice. Such activity may result in account termination without compensation.