In a move aimed at shielding traders from potential risks, online investment platform eToro has announced plans to introduce a short five-minute break in Forex trading hours beginning March 3rd.
Between 22:00 PM UTC and 22:05 PM UTC, all Forex currency pairs on the eToro platform will observe a trading halt.
The broker said this limited suspension is necessary to guard against inflated bid-ask spreads that can occur during periods of low liquidity overnight.
Volatility naturally increases when market participation shrinks. But even minor fluctuations in overnight exchange rates could expose traders to unintended losses. By instituting a daily trading break, eToro seeks to curb that risk until activity resumes and prices stabilize.
Routine intervals between trades are a common practice across financial markets. They allow time for order processing while avoiding unpredictable swings when support is diminished.
Though brief, eToro’s new 5-minute halt aims to better protect investors’ capital from the potential mispricing issues that surface during low-volume times each day in currency pairs.
