What are the risks of trading digital currencies outside regular trading hours?

3 answers

• jamshad aliMay 12, 2025 · 3 months ago
  Trading digital currencies outside regular trading hours can expose traders to higher volatility and increased risk. During off-hours, when trading volume is lower, the market may be illiquid, leading to wider bid-ask spreads and potential slippage. Additionally, outside regular trading hours, there may be limited market surveillance and regulatory oversight, making it easier for manipulative activities to occur. Traders should also consider the potential impact of news and events that may happen during off-hours, as they may not have immediate access to information that could affect their trades.
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• BertiiDec 29, 2023 · 2 years ago
  Trading digital currencies outside regular trading hours can be risky, especially for inexperienced traders. The lack of liquidity during off-hours can result in significant price fluctuations and increased trading costs. Moreover, without proper market surveillance, traders may become more vulnerable to market manipulation and fraudulent activities. It is important for traders to carefully assess the risks and consider implementing risk management strategies, such as setting stop-loss orders, to protect their investments.
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• hureenn syattMar 22, 2023 · 2 years ago
  According to BYDFi, one of the risks of trading digital currencies outside regular trading hours is the potential for increased price volatility. During off-hours, when trading volume is lower, even small buy or sell orders can have a significant impact on the market, leading to sharp price movements. Traders should be aware of this heightened volatility and adjust their trading strategies accordingly. It is also important to note that liquidity may be lower during off-hours, which can make it more difficult to execute trades at desired prices.
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