“Can you trade forex on weekends” is a usual question from beginners who are starting to trade forex. No surprise. A lot of forex beginners are people with regular jobs. They want to start trading forex as a hobby. The hobby which eventually brings them financial freedom.
Forex as a job
However, forex trading is a job like any other. You need to learn a lot, you need to devote a lot of time to understand it. You need time to practice, you need time to real trading. You need time also for analyzing what went wrong.
Therefore question “Can you trade forex on weekends” is absolutely understandable. People have more free time on weekends, e.g. for hobbies. Forex beginners would like to trade on weekends and that’s it.
Forex business hours
Unfortunately, forex business hours are different. Forex is an intercontinental business with traders and banks spread all over the world. Forex market is open anytime when any traders in any country have business hours. And with exception of few countries, Saturday and Sunday are free days.
We usually refer Forex as 5/24 business. You can trade currencies 5 days a week for full 24 hours. That is a big difference to other financial instruments. Stocks are linked to exchanges and even with listing in more countries, you will hardly find equity which is tradeable on every continent.
Forex trading usually starts on Monday in Australia and finishes on Friday in New York. Thanks to time zones you can trade in New York from Sunday 17.00 till Friday 17.00 p.m. That makes for 5 full days. Not bad.
Forex market open time
Sydney 8:00 Monday = Tokyo 6:00 Monday = Frankfurt 23:00 Sunday = London 22:00 Sunday = New York 17:00 Sunday
Forex market close time
Sydney 8:00 Saturday = Tokyo 6:00 Saturday = Frankfurt 23:00 Friday = London 22:00 Friday = New York 17:00 Friday
Can you trade forex on weekends?
No, you can not trade forex on weekends. On weekends you can prepare your strategy. You should analyze last week events on markets, your positions. You have to prepare for next week events and set your trading goals for next week.
With forex markets closed during the weekend, you should be careful with open positions at the end of the week. Sometimes a lot of unexpected things can happen during Saturday and Sunday. Monday open currency rate can be a lot different from Friday close rate.
The basic rule says that short-term positions should be minimized before any holiday, weekend or low-liquidity period. Lower liquidity means that any event will cause much bigger rate movement.
What time is best to start my trading?
Usually, you should trade during your day. Wherever you are located, it is always easier to trade when you are awake.
Of course, you can specialize on currency outside of your location. Then you have to adjust your day rhythm accordingly.
If you live in the USA and want to trade AUD, be prepared for late nights. And be aware, that it will affect also your personal life.
What to do on weekends?
We prefer to study during a weekend. When you trade daily, you often miss time for long read studies about the economy. A weekend is time for analyzing and reconsidering open and intended trades. So you can not trade forex on weekends but you can make your preparations to make your trading better.