As part of our ongoing commitment to providing a transparent and professional trading environment, we want to highlight an important advisory for traders regarding potential platform issues and trading risks during specific market conditions.
Understanding the Risks During Globex Opens (Sundays at 18:00 EST)
The Globex market opens every Sunday at 18:00 EST, marking the start of the new trading week. This time period is often characterized by heightened market volatility, thinner liquidity, and increased risk of platform instability, including slippage and outages.
Slippage occurs when the price at which a trade is executed differs from the expected price due to rapid market movement. This risk is particularly pronounced during the Globex open, where spreads can widen significantly, and order execution may be delayed or disrupted due to server overloads or technical outages.
Additionally, during periods of illiquid market conditions, stop-loss orders may not be executed as expected, potentially resulting in trades moving further against your position than anticipated. This can lead to significant losses and even account failures. Therefore, it is critical to approach trading during these times with heightened caution.
To mitigate these risks, we strongly advise traders to exercise caution and implement the following best practices:
Check Tradovate’s Simulation Status: Before entering live trades, confirm the platform’s stability by reviewing Tradovate’s simulation status. Observe how the platform is performing under simulated conditions to identify potential issues that could affect live trading.
Avoid High-Leverage Positions: Refrain from opening large or high-leverage positions immediately upon the Globex open. Allow the market time to stabilize and liquidity to improve before executing trades.
Plan for Potential Slippage: Incorporate potential slippage into your risk management strategy by adjusting stop-loss and profit-target levels accordingly.
Holiday Trading Hours and Early Market Closes
Similar risks apply during holiday trading sessions, particularly when markets close early. These periods often experience reduced liquidity and irregular price movements, which can amplify the likelihood of slippage, technical disruptions, and missed stop-loss executions.
Trader Responsibility for Losses
It is essential to note that any losses incurred during these periods, whether due to slippage, outages, missed stop-loss executions, or other unforeseen issues, are the sole responsibility of the trader. FundedFuturesFamily does not assume liability for any trading losses resulting from platform instability, market conditions, or trader decisions.
We emphasize this point to ensure all traders are fully aware of the risks and take proactive measures to protect their accounts. By choosing to trade during these periods, traders accept full responsibility for the outcomes of their trades.
Key Recommendations
Pre-Trade Assessment: Always review the platform’s status and market conditions before initiating trades, especially during Globex opens or holiday sessions.
Risk Management: Utilize robust risk management strategies, including appropriate position sizing and stop-loss orders. Keep in mind that stop-losses may not always execute as expected in illiquid markets.
Stay Informed: Regularly monitor announcements and updates regarding platform maintenance or market closures.
Conclusion
Trading during Globex opens or holiday market hours can offer opportunities but also comes with unique risks. At FundedFuturesFamily, we encourage all traders to trade responsibly and remain vigilant about platform performance and market conditions.
By adhering to these guidelines, you can better navigate the challenges of these trading periods and safeguard your trading account from unnecessary risks. Always trade at your own caution, especially in illiquid market conditions where stop-losses may not function as intended.