You can be forgiven for not knowing when you can or can’t trade Forex because there are so many different types of trading, each with its own unique rules and restrictions. In this article, we’ll be looking at when you can enter the world of Forex trading, what the rules are regarding weekend trading, and what tips and tricks we have to share that’ll help you maximize your trading.
When do most Forex traders do business?
The vast majority of Forex traders trade during the week, from Monday morning to Friday night. There are a couple of reasons for this:
First, it’s when the majority of international markets are open, so there’s more liquidity and opportunity. When one country closes for the day, another country opens its markets, meaning there is always access during the week. As such people are able to trade no matter where they are in the world with the knowledge that their business partner will also be able to access the international markets just as well.
Second, some of us have day jobs and can only trade during the evenings and may not yet be at a point where we can leave out regular jobs and trade for a living. Because of this limitation, a vast majority of traders are limited to doing their trading in the evening and in the morning before work. This can be tricky but it can be worked to fit into most busy schedules.
Can I trade Forex on the weekend?
You can trade on the weekend, sometimes. Your access to the trading world on the weekend will largely be dependent on your broker. This can be limited, and it usually is, with many traders closing for the week at the end of Friday, and not reopening until Monday morning. The specific times will depend on the specific broker but a good rule of thumb is that your trading will usually be limited to during the week, but not always.
What you could use your weekend for though is to practice with a demo account. Because most brokers don’t allow access to the markets on the weekend, you could use your free time to practice your strategies virtually and have things set in place so you can start the next week on fire. You don’t have to, but if you want to up your Forex game then putting the hours in on the weekend might be a very smart decision.
What are the pros of trading on the weekend?
There are a few benefits to trading on the weekends. The first is that you have more time to do your research. If you’re working during the week, it can be difficult to find time to keep up with all of the news and information that’s relevant to your trades. However, on the weekends you can take your time and really make sure that you know what’s going on before placing any trades.
You’ll also have less competition on the weekend, meaning that you’ll be less rushed and likely find it easier to place your trades. Fewer people trade on the weekend because access is limited in many countries and so you should expect fewer people to be active, though this isn’t always the case and on occasion, we’ve seen activity peak on the weekend, which in turn encourages others to begin trading.
A handful of brokers offer weekend exclusive bonuses and promotions that aren’t available during the week. These might include things like rebates, increased leverage, or even bonus cash for making trades at this time. While these offers shouldn’t be your only reason for trading, they can certainly make it more worth your while. Just make sure that you read the terms and conditions in full first.
What are the cons of trading on the weekend?
The biggest risk of trading on Saturdays and Sundays is that there is often less liquidity. This means that it can be more difficult to get your trade executed at the price that you want. Because there are fewer people trading, there is also less money moving around, which can make it more difficult to find a buyer or seller for your position. This can lead to slippage, which is when your order is filled at a different price than you expected.
Slippage can eat into your profits or increase your losses, so it’s important to be aware of this risk before placing any trades. The last thing you want to have on your hands is an asset that you’re desperate to get rid of but can’t find a seller for. This is rarely the case but you should be prepared for these unusual occurrences if you do decide to trade at an irregular time. It pays to be prepared.
