Although you can technically trade forex on the weekend thanks to the market’s time schedule, this doesn’t necessarily mean you should do so. Allow us to explain why. Typically, the busiest Therefore, Sunday is not the best day to trade the Forex market. This is why it's not recommended to start your trading week on Sunday. Judging by the lack of activity on the Why Forex brokers discourage trading on weekends. Barring Middle East, across the globe, almost all the financial institutions remain closed during the weekends. At least, trading desks Answer (1 of 9): Normally, trading Forex on a Sunday is not a good idea because there is low liquidity, spreads are wider (so transaction costs are higher) and the volatility is Since there isn't much economic activity on weekends, it's also unlikely that the market will adjust to new conditions. Sunday night is the only time of the trading week, when gaps occur ... read more
You must be logged in to post a comment. Additional menu. Let us start by giving a few explanations on the forex market and how things work in the market. The foreign exchange market is one that has to do with the exchange of currencies.
What do forex markets open on Sunday? Forex markets open on Sunday by 5 pm EST. Can you trade on Sunday? Many traders simply choose not to trade on the weekend. This is due in part to lifestyle reasons, as many of these traders are looking to spend time with their families or to kick back and relax as the weekends. This is yet another reason why many traders avoid the market on weekends, as it seems less efficient to trade during this time. You should also know that there are some other times that may be better to avoid, such as when major news releases are expected.
Political news or elections, financial news, and other events can really shake up the market and make it harder to predict what will happen, but some traders do thrive in this type of market environment. We covered a few important topics in this article related to trading on the weekend.
Flexible market hours provide traders with several different opportunities for trading and everyone should be able to find trading times that work best with their schedule. Paying attention to the best trading times will help ensure that you get the most efficient results with less effort invested, plus you might be able to take advantage of benefits like tighter spreads and more trading opportunities. Save my name, email, and website in this browser for the next time I comment.
About Us Advertise With Us Contact Us. Forex Academy. Home Beginners Forex Education Forex Basics Is it Possible to Trade Forex on Sundays? RELATED ARTICLES MORE FROM AUTHOR. Why Forex Traders Must Value Their Time. How to Correctly Deal With Forex Losses.
The reason for this is that the big players such as big banks and hedge funds close their positions for the weekend on Fridays. The same applies to individual traders. As this gap happens when the systems and platforms are not recording them — the stop loss orders might not be executed if the rates jump over the exact rate that was set as a stop by the trader. If one happens to be trading during Friday despite the risks of high uncertainty then the exact closing times of major markets London, NY must be monitored closely because at those closing times the rates and liquidity can swing wildly resulting in slips, high spreads and overall losses.
One should avoid opening or closing positions when major economic numbers are released Monthly employment reports of the USA, UK, etc. How to know if the news is big and important?
There are Economic Forex calendars that show the upcoming events and their expected impact. This especially applies to the UK and USA bank holidays. The amount of resources traded in the Asian market sessions are comparatively very low so the average pip movements are too low to cover the high spreads of the Asian currencies.
This is the time when a lot institutional and Bank employees take holidays thus the volume of commercial transactions can fall during this time.
World championships in Football, NBA or Superbowl finals, The X-Factor, etc.
Even though in theory the currency market never closes, it is extremely hard to see someone trading on a Sunday. A beginner may even feel the trading activity has come to a halt because of Forex brokers who take a break on weekends. However, it is not the case as explained below.
In one of our earlier guides Who Trades Forex? we had mentioned that currency trading is primarily done to facilitate trade and travel. It is one of the main reasons for the currency market to remain closed during the weekends. Barring Middle East, across the globe, almost all the financial institutions remain closed during the weekends.
At least, trading desks of most banks will not function. So, if a retail broker still allows trading to happen through its platform, then it could likely face two issues. Firstly, a broker acting as a market maker will have no options to hedge the risk as the major counter-parties banks and other financial institutions are away from the trading desk.
Secondly, the broker cannot offer tight spreads due to lack of liquidity. The spread of a currency pair is inversely proportional to its liquidity the spread decreases when major players try to outbid each other to get their trades executed. So, to compensate for the loss of liquidity, reduce risk, and act as a counter-party to a trade, a Forex broker should increase the spread considerably a spread of 20 pips was normal when OANDA was offering weekend trading before disabling the feature.
An increase in spread would discourage retail traders from entering a trade. Further, an FX broker needs to employ some people to monitor the situation during the weekends. Additionally, to keep the systems working during weekends, a broker will incur additional infrastructure related costs power, uplink, and so on.
Ultimately, the company may not have much to gain by offering weekend trading. Additionally, if the market opens with a large gap on the subsequent day, then it may result in a huge loss to the broker. Since the reward is rarely worth the risk, retail brokers choose not to offer weekend trading. Theoretically, a high net worth individual with a big trading account can negotiate with a Forex broker to place trades on weekends.
However, considering the liquidity and spread aspects, it is hardly a prudent way to trade. Weekend closure also allows Forex brokers to conduct weekend maintenance of the systems e. Professional traders, who can gauge the trend of a currency pair with reasonable accuracy, will not have any need to place an order during the weekend.
They would rather do it on Monday GMT when the next session opens. In case of beginners, it would be better to have a rest, assess performance, fine tune the strategy and come back fresh when the market opens on Monday. Even though the normal currency market is closed on weekends, you can still trade cryptocurrencies on Saturday and Sunday via brokers that offer such a service. If you want to get news of the most recent updates to our guides or anything else related to Forex trading, you can subscribe to our monthly newsletter.
MT4 Forex Brokers MT5 Forex Brokers PayPal Brokers WebMoney Brokers Oil Trading Brokers Gold Trading Brokers Muslim-Friendly Brokers Web Browser Platform Brokers with CFD Trading ECN Brokers Skrill Brokers Neteller Brokers Bitcoin FX Brokers Cryptocurrency Forex Brokers PAMM Forex Brokers Brokers for US Traders Scalping Forex Brokers Low Spread Brokers Zero Spread Brokers Low Deposit Forex Brokers Micro Forex Brokers With Cent Accounts High Leverage Forex Brokers cTrader Forex Brokers NinjaTrader Forex Brokers UK Forex Brokers ASIC Regulated Forex Brokers Swiss Forex Brokers Canadian Forex Brokers Spread Betting Brokers New Forex Brokers Search Brokers Interviews with Brokers Forex Broker Reviews.
No Evaluation Prop Firms Prop Firms for Swing Traders. Forex Books for Beginners General Market Books Trading Psychology Money Management Trading Strategy Advanced Forex Trading. Forex Forum Recommended Resources Forex Newsletter.
What Is Forex? Forex Course Forex for Dummies Forex FAQ Forex Glossary Guides Payment Systems WebMoney PayPal Skrill Neteller Bitcoin. Contact Webmaster Forex Advertising Risk of Loss Terms of Service. Advertisements: EXNESS: low spreads - just excellent! Please disable AdBlock or whitelist EarnForex. Thank you! EarnForex Education Guides. Major participants in the Forex market In one of our earlier guides Who Trades Forex? Why Forex brokers discourage trading on weekends Barring Middle East, across the globe, almost all the financial institutions remain closed during the weekends.
Is there a way to trade on weekends?
Why Friday Is Not Suitable for Forex Trading. Usually, FX is not open on a Friday. The graph of trade shows less volume at weekends. The reasons behind this are: Institutions are in the Although you can technically trade forex on the weekend thanks to the market’s time schedule, this doesn’t necessarily mean you should do so. Allow us to explain why. Typically, the busiest Since there isn't much economic activity on weekends, it's also unlikely that the market will adjust to new conditions. Sunday night is the only time of the trading week, when gaps occur However, the forex market opens on Sunday at 5 pm EST. It closes at 5 pm EST on Friday. The different time zone is a major reason why the forex market is always active. Another reason is Therefore, Sunday is not the best day to trade the Forex market. This is why it's not recommended to start your trading week on Sunday. Judging by the lack of activity on the Answer (1 of 9): Normally, trading Forex on a Sunday is not a good idea because there is low liquidity, spreads are wider (so transaction costs are higher) and the volatility is ... read more
This is why it's not recommended to start your trading week on Sunday. Login Register. There's a saying on the trading floors of London: "sell in May and go away". A minor decrease of trading volatility occurs on Wednesday, right before another increase the next day. First of all, there is a slow development of activity from late Sunday to Monday. Forex Books for Beginners General Market Books Trading Psychology Money Management Trading Strategy Advanced Forex Trading. Forex Forum Recommended Resources Forex Newsletter.
At least, why not trading forex on sunday, trading desks of most banks will not function. However, considering the liquidity and spread aspects, it is hardly a prudent way to trade. During the trading week, volumes for forex stay fairly high. Take a look at the table below to see the daily pip range for major currency pairs :. How to Use Retracements to Analyze Waves — Part 3 13 February, Out of these three periods, two provide good conditions for trading. Article Contents Forex Trading On Weekends Why Would Trading On Weekends Not Work?