Pending orders over the weekend and the Sunday open surprise

[Amanhasnoname]

Some scalpers leave pending orders in place Friday evening to catch an early move on Sunday. The order sits through the closure, and when the market reopens, a gap can trigger it at a price far from the intended level.

A buy stop placed above Friday's close can fill at a much higher price after a bullish gap. The stop-loss attached to it may be immediately close to the market or already breached.

Spreads on Sunday evening are wide, and the first quotes are often erratic. An order that triggers in this window faces slippage and sometimes a spike that reverses within minutes.

Brokers have different rules about pending orders and weekends. Some cancel them automatically, others keep them active. Check the policy.

The safer practice is clearing pending orders before the weekend, and placing new ones only after liquidity normalizes on Sunday evening or Monday morning.

The cost of waiting is small, and the protection against gap fills is substantial.

How does the broker handle pending orders over the weekend, and has a Sunday fill ever caused trouble?