Direct from the desk of Dane Williams
No, trading forex on weekends is not a feasible option.
Forex markets adhere to a strict schedule, operating exclusively on weekdays, a total of 24 hours a day, five days a week.
This means your forex broker’s MT4 platform does not work at all on weekends.
Commencing on Monday morning in the dynamic Asia Pacific financial centers and concluding on Friday afternoon in the financial hub of New York, the forex markets maintain this rigorous timetable.
Curiously, there exists a marginal overlap in trading hours.
For instance, as Friday afternoon approaches in New York, it coincides with Saturday morning for traders in Asia.
However, it's imperative to note that you can’t say this overlap counts as being able to trade on weekends…
Understanding the structure of forex trading involves recognising the four primary trading sessions of Sydney, Tokyo, London and New York.
Each of these sessions unfolds as the global financial markets follow the sun's trajectory.
You’ve heard the alcoholic saying that it’s always 5pm somewhere on the planet?
Well forex traders like to say that it's always 8am somewhere on the planet!
Nevertheless, as the curtain descends on Friday afternoon in New York, the forex market enters a weekend hiatus.
With trading activities temporarily suspended until Monday's dawn in Asia.
Even if you could however, the notion of engaging in forex trading during weekends is ill-advised primarily due to the issue of liquidity.
In low-liquidity conditions, the market becomes an unpredictable terrain, akin to a casino.
The polar opposite of what you should be aiming for as a trader.
Orders become sparse.
They are unevenly distributed across various price levels meaning price lurches up and down, skipping your entries, targets and stops.
Consequently, even a modest trade can see substantial price fluctuations when liquidity is meager.
But for those of you needing to get your gambling fix via weekend trading, the cryptocurrency markets emerge as a viable alternative.
Cryptocurrencies represent a realm where trading never rests.
Actually operating continuously, 24 hours a day, seven days a week.
However, it is paramount to exercise prudence and caution when venturing into weekend trading, whether in the forex or cryptocurrency arena.
The same liquidity challenges encountered in forex persist in the cryptocurrency space, particularly within smaller markets such as our own HIVE crypto.
The allure of weekend trading is undeniable, offering the ability to keep making money from the markets while the rest of the world rests.
Yet, as I’ve shown, this allure is coupled with inherent risks.
The scarcity of liquidity that entices traders also presents substantial dangers.
Whether navigating the complexities of forex or the decentralised world of cryptocurrencies, adopting a judicious approach is the wisest course of action.
Trade diligently, for weekend markets are a realm of unique volatility.
Best of probabilities to you.