How long are Positions Maintained?
Approximately 80% of all forex trades last seven days or less, while more than 40% last fewer than two days. As a general rule, a position is kept open until one of the following occurs: 1) realization of sufficient profits from a position; 2) the specified stop-loss is triggered; 3) another position that has a better potential appears and you need these funds.
As a general rule, a position is kept open until one of the following occurs: 1) realization of sufficient profits from a position; 2) the specified stop-loss is triggered; 3) another position that has a better potential appears and additional margin is needed. There are essentially two categories of traders in the FX market, the position or trend traders” and the day trader. Trend traders are those who tend to hold long term positions using lower leverage perhaps over days, weeks, or even months. Although in this situation we mention lower leverage, please note tht leverage even at this level can lead to large losses as well as gains. Day traders are just the opposite and are those who prefer to open and close a position in a 24 hour period or less. Often, day traders hold positions for as little as a few minutes.
