Can You Trade Forex on Weekends? What You Need to Know

  • Edited
  • 7 minutes

Outside of having access to additional trading opportunities and potential for extra profits that come with it, there are a couple of key advantages to be aware of. These are just a few examples of limiting your risk to for weekend gaps. There are a countless number of techniques that you can employ to ensure that you are managing weekend open trade risk in a responsible manner. Another weekend risk containment strategy could call for exiting any and all open positions at the close of Friday’s session, and then reentering the same positions at the open of Sunday’s session. The latter is a much more conservative way to deal with weekend risk events, but it will come at the cost of incurring additional transaction costs. One of the very best ways to contain weekend gap risk is by limiting your exposure in the market over the weekend to a very small percentage of your overall .

  • Over the past weeks, the meteoric rise changed the trend from bearish to bullish, reflecting strong risk-on sentiment in the broader crypto market.
  • Bitcoin, the leading cryptocurrency, operates in a 24/7 market, yet its weekend performance is remarkably neutral.
  • Weekend trading means trading in financial markets outside the usual Monday to Friday hours.
  • In this instance, weekend positions will be rolled into new weekday contracts.
  • Prices may still fluctuate due to global events, economic changes, or political turmoil.

Weekend Trading with IG: Tips, Strategies & What to Trade

Despite its many advantages, weekend trading has some critical disadvantages that may not be suitable for everyone. To adapt RSI for the weekend’s reduced activity, traders often adjust its sensitivity, changing the usual 14-period setting to an 8-period. This adjustment makes the RSI more responsive, identifying overbought (above 70) and oversold (below 30) conditions more frequently. On IG trading platforms, Saturday and Sunday trading works differently depending on the market.

Cryptocurrencies

  • Investors rushed back into risk assets, betting that the worst might be behind us.
  • Weekend trading is limited to specific assets such as Middle East equities and cryptocurrency.
  • Although weekends are generally considered a break for the forex market, there are still opportunities for trading and strategy planning on Saturday and Sunday.

IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. IG International Limited is licensed to conduct investment business and digital asset business by the Bermuda Monetary Authority. Ultimately, the weekend closure serves as a safeguard, ensuring a more consistent and predictable trading environment during the active hours of operation. Market stability and liquidity are paramount for the effective functioning of the Forex market. Weekend closures help preserve these critical aspects by allowing time for market recovery and realignment. Furthermore, the pause allows traders to manage fatigue and psychological stress, contributing to more rational and effective decision-making when the market reopens.

What are the benefits of forex weekend trading?

Traders may need to adapt by considering longer-term positions or modifying their risk management techniques. Some brokers collaborate with global financial institutions to provide access to interbank trading networks during weekends. This access can result in more competitive spreads and faster execution speeds, which are advantageous in power trend low-activity periods.

Start trading key markets from this weekend

Before you start trading on weekends, if this option is available with your broker. Some people find it difficult to trade on weekdays due to work or business commitments. As a result, they prefer to use their weekends to make extra money in the financial markets. This is particularly beneficial for beginners who are unable to leave their main job but are eager to learn about trading.

They have 20+ years of trading experience and share their insights here. Consider g up for a demo to practice trading with virtual money. A demo will help you acquire essential trading skills and test your trading plan without using real money. When you’re ready to start trading with real money, start with a small amount. Then, gradually increase your position sizes as you gain more experience, skills and confidence.

Other reasons for td ameritrade forex review gaps include product announcements, investor sentiment, profit announcements/warnings, etc. Gaps also appear in the forex market but not as frequently as in other markets because currencies are traded 24/5. Risk management is crucial in forex trading, especially when Monday’s market open may cause gaps due to events over the weekend. Before the weekend ends, review your positions, adjust your stop-loss levels, and manage your position sizes according to your risk tolerance. This will help you effectively control losses during large market fluctuations. Sentiment analysis tools monitor public sentiment and news around assets, which can be especially useful in cryptocurrency markets where social media and news influence price moves.

In such cases, trading over the weekend becomes the only viable option. If you open trades from Monday to Friday and roll over them to the next week, it is important to consider the impact of events that occurred on weekends on your positions. To avoid the potential negative effects of news and to hedge the underlying trend, you can trade on the weekend and open trades on the same asset but in the opposite direction.

For instance, the Australian market is relatively small, and the time zones do not coincide with most trading sessions. To compensate for this, Australian IG broker offers clients the chance to trade certain instruments on weekends. Unlike most exchanges, these markets operate from Sunday to Thursday, allowing investors to trade even on Sundays.

Risks

If you notice an unexplained gap in the market opening on Monday, and there are no significant events impacting the asset’s price, you might consider employing a gap trading strategy. Nowadays, many xtb.com reviews brokers offer the opportunity to trade via a mobile application, making the process much simpler. This allows you to initiate trades from anywhere, whether it is a weekday or the weekend. The key is to ensure that the broker offers the necessary instruments and indicators. Besides, brokers, such as Pocket Option, Nadex, and FXCM, offer weekend trading.

And the 10% blanket tariffs elsewhere are basically an off-ramp for Trump as trade with China is facing a stall. It essentially allows for US firms to seek alternatives and substitutes but again, these things take time. That turned the more tepid mood after the US-UK trade announcement to a strong rally before US stocks ended the day with middling gains. Gold reached an all-time high just three weeks ago a fraction below the half-number at $3,500 per ounce.

The more trading opportunities a market offers, the greater the potential profit. Markets on a Saturday and Sunday can provide extra chances to make money, especially if opportunities are limited during the week. However, this is not always the case, as the market is much less active on weekends. Forex trading usually pauses from Friday evening to Sunday evening, since major forex markets are generally closed on weekends. No, weekend trading in stocks is unavailable due to the hours set by stock exchanges.

The broker’s team of research experts provide strategic market insights through e-books, webinars, podcasts, and videos-on-demand. T4Trade’s blog also provides many trading-related tips and answers many of the questions that traders around the world want to be answered. A trading plan should incorporate elements like your trading style, trading strategy, tolerance for risk, entry and exit points, and position sizing.

Related Topics:
Must Read