News & Weekend Trading
While WWM strives to provide clients with the best execution possible, there are times when market volatility can result in slippage to market orders, pending orders and margin call levels. Market volatility can be impacted by a number of factors including, but not limited to; Economic data releases, central bank policy shifts, comments by officials, natural disasters, and large interbank orders.
Market volatility can cause a gap in prices which can be small, 1 or 2 points, or extreme, 100 points or more. Price gaps are common surrounding important economic data releases, but can also come at unexpected times and over a weekend.
Under these conditions WWM cannot guarantee orders will be executed at a specified price. In the event of a price gap all market orders, stop/loss orders, and margin calls, will be executed at the first available price after a gap has occurred.
WWM’s margin call feature is designed to return used margin to the account equity balance after trades have been closed. However, in the event of a price gap it is possible that account equity can fall to the point where equity becomes negative.
It is important for traders who hold open positions during such times to understand the potential risks. For those who feel this risk is not appropriate to their trading style, we recommend closing all positions and orders prior to these events.